MTS Gold Futures Co., Ltd. (Mae Thong Suk,) revealed that gold prices have sharply declined and fell below the key level of $4,500 once again, before dropping to a nine-week low at $4,400, reflecting significant selling pressure in the market.
The main factor is the ongoing, unresolved negotiations in the Middle East. At the same time, there are reports that the U.S. military has launched additional strikes on Iran after President Donald Trump stated his dissatisfaction with the peace agreement, bringing geopolitical risks back to weigh on the market.
Additionally, persistently high U.S. bond yields continue to pressure gold prices, while the SPDR Gold Fund maintains its holdings at 1,034.85 tons, indicating that institutional investors are still waiting for market direction. Key factors to monitor include the U.S. Core PCE inflation figure and preliminary GDP data.
From a technical perspective, Mae Thong Suk assesses that gold prices have entered a short-term downtrend after falling below $4,500 per ounce. If prices fail to recover above this level, the correction may be prolonged. Gold Spot support levels are at $4,360 and $4,320 per ounce, with resistance at $4,440 and $4,480 per ounce. For domestic gold, the support is at 67,500 baht and resistance at 68,600 baht.
YLG Bullion International Co., Ltd., or YLG, noted that on May 27, gold prices broke below $4,453 per ounce, leading to continued selling pressure. If prices rebound but do not break through the $4,444–$4,464 per ounce range, there is still a chance of retesting support. However, if gold breaks above $4,464 per ounce, the negative outlook will decrease.
YLG recommends opening short positions if the price does not surpass this range and cutting losses if gold breaks above $4,464 per ounce, while suggesting buying back gradually if prices do not fall below $4,401 per ounce.
Hua Seng Heng Gold Futures Co., Ltd., or HSH, assessed that gold prices are still pressured by a strong U.S. dollar, war risks, inflation, and the possibility of prolonged Fed interest rates. Gold has a short-term recovery opportunity if it holds above the $4,410 per ounce support, but if it falls below $4,400 per ounce, a new low is likely.
