Analysis of gold price trend on Tuesday
Updated
Gold continued to rebound and fluctuate in the Asian market on Tuesday, currently trading around 2386. Gold prices fell 0.2% on Monday, dragged down by the rise of the US dollar. In addition, the risk aversion caused by Israel and Lebanon quickly subsided, and investors waited for any signs of interest rate cuts at the Federal Reserve's policy meeting. Wall Street market sentiment was slightly optimistic, and the strengthening of the US dollar put pressure on gold prices. It is reported that high retail gold prices and weak economic growth in China have hindered international gold consumption demand in Asia.
As retail demand for gold declined, gold consumption in China, the world's largest gold consumer, fell 5.6% in the first half of 2024. However, purchases of gold bars and coins increased significantly. Because Israeli officials later said they wanted to fight Hezbollah without an all-out war. This caused risk aversion to fall quickly.
Traders are preparing for a series of market events later this week, including policy decisions from the Federal Reserve, the Bank of Japan and the Bank of England, as well as Friday's US employment report, which may be crucial to the Federal Reserve. On this trading day, investors need to pay attention to the U.S. JOLTs job vacancy data for June, keep an eye on news related to the geopolitical situation, and pay attention to changes in market expectations for the Federal Reserve's decisions.
[Technical side]
The current daily MA10/7-day moving average of gold opens downward to 2400/90, and the RSI indicator does not change much and continues to flatten around the central axis. The short-term four-hour moving average is glued together, and the Bollinger band closing price is adjusted above the middle track 2380. The hourly chart forms a triangle range consolidation, and the upper line resistance 2395/2400 is effective, and the lower line triangle support 2373/2370 is currently effective. The overall trading idea is still based on a volatile high-altitude, low-long, short-term layout.
Asian trading strategy:
Gold 2362-2364 long, stop loss 2353, target 2380-2390;
Gold 2386-2388 short, stop loss 2397, target 2360-2370;
Note: The above strategy was updated on July 30.
As retail demand for gold declined, gold consumption in China, the world's largest gold consumer, fell 5.6% in the first half of 2024. However, purchases of gold bars and coins increased significantly. Because Israeli officials later said they wanted to fight Hezbollah without an all-out war. This caused risk aversion to fall quickly.
Traders are preparing for a series of market events later this week, including policy decisions from the Federal Reserve, the Bank of Japan and the Bank of England, as well as Friday's US employment report, which may be crucial to the Federal Reserve. On this trading day, investors need to pay attention to the U.S. JOLTs job vacancy data for June, keep an eye on news related to the geopolitical situation, and pay attention to changes in market expectations for the Federal Reserve's decisions.
[Technical side]
The current daily MA10/7-day moving average of gold opens downward to 2400/90, and the RSI indicator does not change much and continues to flatten around the central axis. The short-term four-hour moving average is glued together, and the Bollinger band closing price is adjusted above the middle track 2380. The hourly chart forms a triangle range consolidation, and the upper line resistance 2395/2400 is effective, and the lower line triangle support 2373/2370 is currently effective. The overall trading idea is still based on a volatile high-altitude, low-long, short-term layout.
Asian trading strategy:
Gold 2362-2364 long, stop loss 2353, target 2380-2390;
Gold 2386-2388 short, stop loss 2397, target 2360-2370;
Note: The above strategy was updated on July 30.
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