Analysis of gold price trend on Wednesday
Updated
In the Asian market on Wednesday, spot gold fluctuated in a narrow range at a high level, and the current price is around 2516. Gold prices continued to rise on Tuesday, once refreshing the historical high to 2531, and stayed above the key level of 2500, helped by the weakening of the US dollar to a new low this year and investors' confidence in the Fed's possible interest rate cut in September.
Gold prices continued to set records. So far this year, gold is undoubtedly one of the best performing assets. In the view of industry insiders, the reasons for gold's strong performance include traditional factors such as interest rate cut expectations and risk aversion, as well as the reason that global central banks are buying gold, which cannot be ignored. In the short term, we should focus on factors such as interest rate cuts, U.S. economic expectations, and the U.S. election. We do not rule out the possibility that gold prices will face shock adjustments in the future.
This week, investors focus on the annual meeting of global central banks held in Jackson Hole, and Federal Reserve Chairman Powell is scheduled to speak at this economic seminar on Friday. Wall Street is looking for hints of expectations for the Fed's September meeting.
[Technical side]
The moving average system of the gold daily chart still maintains an upward trend. The RSI indicator of the short-term four-hour chart turned downward after the high value of 80 was under pressure. The price continued to extend the upper track of the Bollinger Band for many days to form the end of the long cycle. The new long and short cycle time window is approaching, and it is necessary to pay attention to the conversion of long and short positions in the market. Gold will trade in a range of fluctuations on Wednesday, selling high and buying low. It is expected that the adjustment will be mainly around the 2530/2500 range during the day.
Trading strategy:
2495-2500 long, stop loss 2489, target 2530-2540;
2527-2531 short, stop loss 2540, target 2500-2490;
Gold prices continued to set records. So far this year, gold is undoubtedly one of the best performing assets. In the view of industry insiders, the reasons for gold's strong performance include traditional factors such as interest rate cut expectations and risk aversion, as well as the reason that global central banks are buying gold, which cannot be ignored. In the short term, we should focus on factors such as interest rate cuts, U.S. economic expectations, and the U.S. election. We do not rule out the possibility that gold prices will face shock adjustments in the future.
This week, investors focus on the annual meeting of global central banks held in Jackson Hole, and Federal Reserve Chairman Powell is scheduled to speak at this economic seminar on Friday. Wall Street is looking for hints of expectations for the Fed's September meeting.
[Technical side]
The moving average system of the gold daily chart still maintains an upward trend. The RSI indicator of the short-term four-hour chart turned downward after the high value of 80 was under pressure. The price continued to extend the upper track of the Bollinger Band for many days to form the end of the long cycle. The new long and short cycle time window is approaching, and it is necessary to pay attention to the conversion of long and short positions in the market. Gold will trade in a range of fluctuations on Wednesday, selling high and buying low. It is expected that the adjustment will be mainly around the 2530/2500 range during the day.
Trading strategy:
2495-2500 long, stop loss 2489, target 2530-2540;
2527-2531 short, stop loss 2540, target 2500-2490;
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