After the Asian trading session opened on Monday (May 19), the spot gold price opened $17 higher, and then the gold price soared further. The current gold price is around $3,244/ounce, soaring more than $40 a day. Moody's, an international credit rating agency, announced on the 16th that due to the increase in US government debt and interest expenses, the agency decided to downgrade the US sovereign credit rating from Aaa to Aa1, and at the same time adjusted the US sovereign credit rating outlook from "negative" to "stable". This incident has aroused concerns about the US fiscal situation, and the resulting safe-haven buying has stimulated the strengthening of gold prices.

The current gold price itself is already at a relatively high level. At the same time, with the recent suspension of external events such as the trade war, some investors may take profits at high levels or the central bank may slow down the pace of gold purchases in the short term, which may lead to a phased correction in gold prices. However, from a medium- to long-term perspective, with the decline in the credit of the US dollar, the start of the Fed's interest rate cut cycle, and the continued increase in gold purchases by global central banks, gold is expected to continue to maintain a long-term upward trend after a short-term adjustment.

From the weekly spot gold market, since the record high near the 3500 line, the gold price has maintained a trend of adjustment and correction. Since the support of MA5 was lost last week, it not only recorded a big negative line, but also tested the protection of MA10. If it falls further, it may continue to open up space for a decline. At present, the position of MA20 is still at the 3000 mark. In addition, we must be wary of the risk of a dead cross in the MACD indicator.

From the daily spot gold market, considering that the double top pattern has been formed and has broken through the neckline, the gold price may make further corrections, and the budget space can theoretically reach $200, but it will need to be combined with the market fundamentals. At present, the short-term moving average group is turning downward to exert pressure, and the MACD indicator is also in a dead cross state, accelerating towards the 0 axis line. Therefore, it is recommended to keep shorting on rallies for the time being. Pressure: 3210-3220-3230 Support: 3195-3188-3180.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.