Analysis of gold price trend on Tuesday
Updated
In the Asian market on Tuesday, gold fluctuated in a narrow range and is now around 2391. Gold prices fell to a low of 2383/ounce on Monday. The continued rebound in U.S. Treasury yields put a slight pressure on international gold, but the overall volatility has narrowed. Traders are waiting for more U.S. economic data and speeches by U.S. Federal Reserve officials later this week to get more information about the timetable for rate cuts, and news related to the U.S. election also affects market sentiment!
The shape and trend of the U.S. Treasury yield curve are becoming the focus of market attention. Recently, the yield on the U.S. 30-year Treasury bond has been higher than the 2-year yield for the first time since January this year. Lower interest rates reduce the opportunity cost of holding non-interest-bearing gold. Pay attention to Thursday's second-quarter gross domestic product (GDP) report and Friday's June personal consumption expenditures (PCE) price index data for clues about the Fed's interest rate path.
U.S. President Biden abandoned his troubled re-election campaign on Sunday under increasing pressure from his Democratic colleagues and supported Vice President Harris to succeed him as the party's candidate to face Republican candidate Trump in the November election. This trading day focuses on the total annualized total of U.S. existing home sales in June, the U.S. election and news related to geopolitical situation.
Technical side
From the current pattern of the gold daily chart, the price has tested 2380, which is close to the middle track of the Bollinger Band. The RSI indicator synchronously retreated to the middle axis 50 and the value was flat. The short-term four-hour chart and hourly chart prices were in the middle and lower tracks of the Bollinger Bands and were running short, and the moving average was glued and narrowed. Whether the short-term short-term adjustment can end, the technical side does not support it at present. Unless there is a significant positive or risk aversion in the fundamental market news, then the adjustment wave may be completed in advance and end a deeper correction. The trading idea on Tuesday is mainly to rebound high-altitude layout, and low-multiple short-term auxiliary.
Asian trading strategy:
Short-term gold 2388-2390 long, stop loss 2380, target 2410-2420;
Short-term gold 2408-2410 short, stop loss 2419, target 2390-2380;
The shape and trend of the U.S. Treasury yield curve are becoming the focus of market attention. Recently, the yield on the U.S. 30-year Treasury bond has been higher than the 2-year yield for the first time since January this year. Lower interest rates reduce the opportunity cost of holding non-interest-bearing gold. Pay attention to Thursday's second-quarter gross domestic product (GDP) report and Friday's June personal consumption expenditures (PCE) price index data for clues about the Fed's interest rate path.
U.S. President Biden abandoned his troubled re-election campaign on Sunday under increasing pressure from his Democratic colleagues and supported Vice President Harris to succeed him as the party's candidate to face Republican candidate Trump in the November election. This trading day focuses on the total annualized total of U.S. existing home sales in June, the U.S. election and news related to geopolitical situation.
Technical side
From the current pattern of the gold daily chart, the price has tested 2380, which is close to the middle track of the Bollinger Band. The RSI indicator synchronously retreated to the middle axis 50 and the value was flat. The short-term four-hour chart and hourly chart prices were in the middle and lower tracks of the Bollinger Bands and were running short, and the moving average was glued and narrowed. Whether the short-term short-term adjustment can end, the technical side does not support it at present. Unless there is a significant positive or risk aversion in the fundamental market news, then the adjustment wave may be completed in advance and end a deeper correction. The trading idea on Tuesday is mainly to rebound high-altitude layout, and low-multiple short-term auxiliary.
Asian trading strategy:
Short-term gold 2388-2390 long, stop loss 2380, target 2410-2420;
Short-term gold 2408-2410 short, stop loss 2419, target 2390-2380;
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