Analysis of gold price trend on Wednesday
Updated
Spot gold continued its decline in early Asian trading on Wednesday and is currently around $2,383. Gold prices fell back below the 2,400 mark on Tuesday as market concerns about an impending recession eased, the dollar strengthened and bond yields rebounded, although expectations of a September U.S. rate cut and escalating geopolitical tensions in the Middle East still provided some support for gold prices.
U.S. Treasury yields climbed as expectations of an imminent Fed rate cut grew, recovering some of the sharp declines since April. The rise in the U.S. dollar index has made dollar-denominated gold more unaffordable for overseas buyers. The strengthening of the U.S. dollar and U.S. Treasury yields has become the main reason for the sell-off in gold prices. In addition, the rebound in global stock markets has boosted market risk appetite, which has also hit gold, which has safe-haven properties.
Investors need to pay attention to China's July trade data, speeches by Fed officials and news related to the geopolitical situation, and pay attention to news related to the U.S. election and the performance of the U.S. stock market on this trading day!
[Technical side]
The gold daily chart has formed a continuous falling structure, and the bears have the dominant advantage. As the price falls again, the RSI indicator is running below the 50 value. The New York closing price loses the MA10 daily moving average of 2410. The gold short-term four-hour chart price gradually moves down from the lower track low point of the Bollinger band, the moving average opens downward, and the RSI indicator runs below the middle axis. Gold is mainly high-altitude, and low-long auxiliary.
Trading strategy:
2363-2365 long, stop loss 2352, target 2400-2390;
2400-2403 short, stop loss 2412, target 2380-2370;
Please see below for London/NY market strategy updates
U.S. Treasury yields climbed as expectations of an imminent Fed rate cut grew, recovering some of the sharp declines since April. The rise in the U.S. dollar index has made dollar-denominated gold more unaffordable for overseas buyers. The strengthening of the U.S. dollar and U.S. Treasury yields has become the main reason for the sell-off in gold prices. In addition, the rebound in global stock markets has boosted market risk appetite, which has also hit gold, which has safe-haven properties.
Investors need to pay attention to China's July trade data, speeches by Fed officials and news related to the geopolitical situation, and pay attention to news related to the U.S. election and the performance of the U.S. stock market on this trading day!
[Technical side]
The gold daily chart has formed a continuous falling structure, and the bears have the dominant advantage. As the price falls again, the RSI indicator is running below the 50 value. The New York closing price loses the MA10 daily moving average of 2410. The gold short-term four-hour chart price gradually moves down from the lower track low point of the Bollinger band, the moving average opens downward, and the RSI indicator runs below the middle axis. Gold is mainly high-altitude, and low-long auxiliary.
Trading strategy:
2363-2365 long, stop loss 2352, target 2400-2390;
2400-2403 short, stop loss 2412, target 2380-2370;
Please see below for London/NY market strategy updates
Trade active
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Before the NY market, both the dollar and gold are slowly rebounding. Let's see how the NY market will reactTrade active
Gold is running according to my chart, blocked near 2400. I tried to sell near 2390 in the morning. Target 2385~2380~2375 Trade active
The SELL2390 shared just now has now reached 2385. Close part of the profits and set BE. View my profile to get access to gold analysis and signals Trade active
I hope I can give you confidence. Trade active
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