On Tuesday (May 20) in the Asian market, spot gold weakened slightly, currently trading around $3,220/ounce, down about 0.3%. Gold prices fluctuated and rose on Monday, with spot gold once rising to around the 3,250 mark and closing at around 3,230.07, driven by the weakening of the US dollar and safe-haven demand after Moody's downgraded the US government's credit rating.

Gold is considered a safe asset under geopolitical and economic uncertainty. It has hit record highs several times this year and has risen 23.1% so far this year. Russian President Vladimir Putin said on Monday after a phone call with Trump that efforts to end the war in Ukraine are on track and Moscow is ready to cooperate with Ukraine on a memorandum of understanding for a future peace agreement. The market is looking forward to Trump and Putin promoting a ceasefire between Russia and Ukraine after their phone call on Monday, and concerns about the geopolitical situation have cooled down.

Gold failed to continue after rising in early trading on Monday, fluctuating sideways at a low level, and the range is waiting to be broken. Gold closed with a cross star with long upper and lower shadows on the daily line. The yin-yang conversion continued, and the trend suppressed the high point downward. The short-term pressure came to around 3240. The support continued to test the level around 3200. If it breaks, it will continue to fall, and then continue to rebound. At present, the ABC three-wave downward trend of the gold market from 3500 is relatively obvious. Although there is interference from the news, it does not affect this structure. The 4-hour level presents a descending channel pattern. The price rebounded after testing the lower track of the channel many times, but it has never effectively broken through the 3250 central axis suppression.

The current daily line of gold price is two Yins and one Yang, but it has not effectively broken the previous low. It is expected that the bottoming and recovery mode may continue today. In terms of operation, it is recommended to pay attention to the 3260-3200 range, rely on the upper and lower edges of the channel to implement a high-altitude low-multiple strategy, and focus on preventing the risk of breakthrough during the European session. In terms of the point, go short directly at 3230-3223 in the Asian session, and wait for a rebound to go short near 3240. The target is 3205-3200, and if it breaks, go short at 3190-3170.

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.