In the early Asian market on Thursday (July 17), spot gold fluctuated narrowly and is currently trading around $334,650/ounce. On Wednesday, a Bloomberg report that Trump might fire Powell quickly detonated the market, causing the US dollar index to fall sharply from a nearly three-week high. The US stock market once fell 0.8%, while the price of gold rose sharply by more than $50 driven by risk aversion, hitting a nearly three-week high of $3,377.17/ounce. However, Trump subsequently issued a statement, making it clear that he did not intend to fire Powell, although he still retained a vague attitude of "any possibility" and pointed the finger at the so-called "overspending" problem of the $2.5 billion renovation project of the Federal Reserve's Washington headquarters. This clarification narrowed the increase in gold prices, and finally closed at $3,347.38/ounce, up 0.68%.

The US producer price index (PPI) was flat month-on-month in June, lower than the market's expected 0.2% increase, and the core PPI also performed steadily. This contrasts with the 0.3% increase in May, showing that weak service prices have offset the rise in commodity prices caused by import tariffs to a certain extent. This data provides support for gold prices, as mild inflation data eases market concerns about the Fed's immediate tightening policy. However, the 2.3% year-on-year increase in PPI in June still shows certain inflationary pressures. Combined with the impact of Trump's tariff policy, inflation may rise further in the coming months.

From the daily level of spot gold, yesterday's gold price fluctuated violently and recorded a cross star K-line. The price failed to effectively break through the previous high and then fell back, suggesting that the upper pressure effect is relatively strong. At present, the MACD indicator double lines have begun to flatten, failing to provide valuable reference signals. It is recommended to pay attention to the support effect of the 3320 line below.

From the 4-hour level of spot gold, the gold price fell from the 3375 level on Monday. Although it rose sharply last night, it still failed to break through. It is currently trading in the range of 3320-3370. It is recommended to focus on the idea of shock in the short term and observe the breakthrough direction in the future. Pressure: 3350-3360-3370 Support: 3340-3330-3320.

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.