On Thursday (June 16), spot gold weakened slightly, reversing some of the overnight gains. Overnight, the Federal Reserve further accelerated its interest rate hike as scheduled, and the gold market was full of bad news, with a sharp increase of more than 1.4%. However, the technical side is still bearish, and the gold price is expected to fall below $1813 in the future.

At 15:22 Beijing time, spot gold fell 0.33% to US $1827.03 per ounce; The dollar index rose 0.54% to 105.434.

Michael McCarthy, chief strategist of tiger securities in Australia, said that the gold market was supported by potential hedging demand and Inflation Hedging buying, but faced with the selling pressure brought by the higher interest rate environment, the gold price was in a dilemma.

"For weeks, gold has been fluctuating in the range (despite major news)... At present, it is difficult for traders to figure out what will push gold out of this range."

The Federal Reserve announced a 75 basis point hike overnight, the largest single rate hike in 25 years. This is a last resort measure taken after the latest data showed that its inflation Sniper War has made little progress, but it also marks the economic slowdown and rising unemployment rate in the coming months.

Brian LAN, managing director of goldsilver central, a trader, said that major investors with large gold positions knew that the economic outlook was still challenging and were still more willing to hold gold as a safe haven asset.

Dhwani Mehta of fxstreet pointed out that bulls faced fatigue near the 200 day moving average (DMA) of $1842. "The daily chart shows that the rebound of gold price is still blocked by the key 200 day moving average below $1842.

Bulls need to close above this level to continue the rebound, and the next target is the moderately bullish 21 day moving average of $1847. On the top, the price of gold will challenge the psychological level of $1850. "

On the hour chart, the gold price started a downward ((3)) wave from $1842, and the lower support looked at $1813. (3) wave is the sub wave of wave III. On the daily chart, the gold price started a downward III wave trend from US $1879, and the lower support looked to the 38.2% target of US $1798 and 61.8% target of US $1748. III wave is the sub wave of downward (c) wave since 1998 US dollar. (c) The wave belongs to the ((c)) wave started from US $2070.