In the early Asian session on Wednesday (July 16), spot gold fluctuated and is currently trading around $3,330/ounce. Trump said that he would soon send tariff letters to small countries, and the tax rate may be slightly higher than 10%, providing safe-haven support for gold prices. Gold prices are currently in a range of fluctuations since mid-May, but the market believes that the uncertainty of tariff policies may provide support for gold prices.

The US dollar index has risen continuously in the past four trading days, reaching a high of 98.70 on Tuesday, a new high since June 23. The strength of the US dollar makes gold denominated in US dollars more expensive for investors holding other currencies, thus putting pressure on gold prices. In addition, the PPI data to be released on this trading day will further provide guidance to the market. If the PPI data also shows inflationary pressure, it may further reduce expectations for interest rate cuts, thereby suppressing gold prices. However, the mild core inflation data provided some comfort to the market, indicating that inflation has not yet gotten out of control and the safe-haven function of gold is still attractive.

From the daily level of spot gold, after nearly two weeks of strong rebound, the current gold price has finally returned to the top of the short-term moving average group, and the shape is also favorable to the bulls. Therefore, from the K-line trend of this week, it is still relatively good. The next major pressure may be near the 3400 line. However, the MACD indicator at this stage is still near the 0 axis. In the future, we should pay attention to whether it can successfully break through the 0 axis. It is recommended to pay attention to the 3350-3400 range.

From the 4-hour level of spot gold, with the gradual rise of the low position, gold has actually formed a relatively obvious upward trend in the short term. In addition, it has successfully broken through the previous high, so it is expected to build a strong bottom pattern in the future. At this stage, the moving average group shows a bullish arrangement signal, and the MACD indicator also maintains a golden cross opening above the 0 axis. Therefore, the bulls will have an active advantage. In terms of operation, it may be temporarily based on buying on dips. Pressure: 3338-3350-3360 Support: 3325-3310-3300.

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.