During Wednesday's (April 10th) Asian session, spot gold descended and then rose, and it is now trading at $2351.

Yesterday, gold oscillated widely, but the market keeps bullish on precious metals. Meanwhile, gold also hit a new high at $2365 in the Asian session, and closed with another bull candle. There be will heavyweight CPI data released tonight, and the market may trade on that in advance.

In the past, gold surged against the pressure of the Fed's hawkish stance, mainly due to the risk aversion demand. Since Israel bombed the Iranian embassy, the market expected that Iran would retaliate. However, with Israel withdrawing and successively shutting down its 28 embassies, Iran still hasn't responded with a counterattack within 48 hours as the market expected. The longer the time passes, the more possible that a negotiation will be held, which will cool down the risk aversion. Besides, Israel's industrial base is weak, so it will lose soon without the backup from the U.S. Now, the U.S. doesn't want to be involved, but it won't give up Israel easily. After all, it will affect the USD settlement for energy. Peace talks will be the last step after Israel has been censured because the big picture now is the Security Council cease-fire agreement.

Voice of Fed officials: Atlanta Fed President Bostic reiterated his expectation for one rate cut this year. He said that if the economic situation changes, he is open to postponing rate cuts or making more cuts. Moreover, he said it may be necessary to further postpone the rate cuts, but if the inflation falls at a normal speed, an earlier rate cut will be possible.

Today's focus: U.S. CPI data.

Yesterday, gold moved under a strong bullish sentiment as any retracements finally were supported. After a retracement, buying orders will increase immediately. Thanks to the gold bulls, gold closed with a bull candle yesterday, and it once touched $2365, a new high. In addition, the lowest gold price was at $2338, showing a strong pattern. The bullish trend today may be weaker because gold is now located at an absolutely high level, and the CPI data will be released tonight to give a hint of further rate cuts. Therefore, investors need to catch the trading opportunity after the data release. If the CPI rises unexpectedly, gold may reach the phase top. Otherwise, gold will keep appreciating to $2400. In my opinion, the bullish trend is ending now, especially after the surge in crude oil prices in March. I hold pessimistic views as inflation data will probably rise. Since the Fed stopped rate hikes, the decline in inflation has slowed down, and investors are too optimistic about the cooling speed of inflation.

Technically, gold closed higher again and maintained an oscillating upward trend yesterday. It also continues the trend that every retracement will be supported, which has lasted for a while and investors may consider it a normal pattern. However, it is a dangerous signal. In the 1H chart, the MACD line crosses below the signal line with the death cross widening, indicating the release of bearish momentum. This trend is still valid now, and gold may oscillate lower today. But as the data will be released soon, gold bears have no momentum to drag down the price. In contrast, the deprecation is brought by the exit of gold bulls. Thus, we should not expect a large decline. In the 4H chart, the MACD line crosses below the signal line at highs, and the bearish divergence signal is valid. Meanwhile, the technical pattern turns downward, so gold will retrace later. In the daily chart, gold closed with a bull candle again, while the MACD line crosses above the signal line and the golden cross widens. Meanwhile, gold is in a serious overbought area, which stops us from chasing the rise, so we should buy low and sell high. We have to be clear that technical indicators are for reference in normal situations, and they will be invalid under extreme situations. Today, the trading range will be $2325-$2375, where aggressive investors can buy low and sell high.

Trading direction: Short

Entry price: 2375

Target price: 2325

Stop loss: 2385

Support: 2337.000/2300.000

Resistance:2365.000/2400.000