Analysis of gold price trend on Wednesday
Updated
Gold held above the 2,400 mark in the Asian market on Wednesday. Gold prices rose 0.55% on Tuesday, ending a four-day decline. U.S. existing home sales fell more than expected in June, and U.S. bond yields fell, providing support for gold prices. Surveys showed that the Federal Reserve will cut interest rates twice this year, attracting bargain hunting to continue to support gold prices. Investors are waiting for U.S. economic data to be released later this week to further clarify the timing of the Federal Reserve's interest rate cut this year.
The U.S. economic schedule is busy this week with key data to be released. Driven by expectations of rate cuts, the dollar rose and U.S. Treasury yields fell. Gold prices recovered and climbed above 2,400, ending a four-day decline due to falling Treasury yields.
The focus this week will be the U.S. second quarter gross domestic product (GDP) report on Thursday and the latest personal consumption expenditures (PCE) price index on Friday, which is the inflation indicator favored by the Federal Reserve. Meanwhile, India cut import tariffs on gold and silver, a move that industry officials said would boost retail demand.
[Technical side]
The downward adjustment of gold has been temporarily suspended, and the adjustment wave structure cycle has been extended. The MA10/7-day moving average of the four-hour chart holds the 2400 mark to form a golden cross and open upward. Currently, the middle track of the Bollinger Band and the RSI indicator axis 50 value are adjusted. The daily line fell and rebounded to close the positive K, the 10/7-day moving average narrowed to 2423~26, and the RSI indicator axis was adjusted. Technically, gold has obviously suspended its downward adjustment, and after stabilizing at 2400, a bullish counterattack situation has been formed. The main idea is to rise first and then fall. It is planned to hold on to the 2400 mark and pull back to do more at a low price during the day!
Asian trading strategy:
Short-term gold 2393-2395 long, stop loss 2384, target 2410-2420;
Short-term gold 2418-2420 short, stop loss 2429, target 2400-2390;
Note: The above strategy was updated on July 24.
The U.S. economic schedule is busy this week with key data to be released. Driven by expectations of rate cuts, the dollar rose and U.S. Treasury yields fell. Gold prices recovered and climbed above 2,400, ending a four-day decline due to falling Treasury yields.
The focus this week will be the U.S. second quarter gross domestic product (GDP) report on Thursday and the latest personal consumption expenditures (PCE) price index on Friday, which is the inflation indicator favored by the Federal Reserve. Meanwhile, India cut import tariffs on gold and silver, a move that industry officials said would boost retail demand.
[Technical side]
The downward adjustment of gold has been temporarily suspended, and the adjustment wave structure cycle has been extended. The MA10/7-day moving average of the four-hour chart holds the 2400 mark to form a golden cross and open upward. Currently, the middle track of the Bollinger Band and the RSI indicator axis 50 value are adjusted. The daily line fell and rebounded to close the positive K, the 10/7-day moving average narrowed to 2423~26, and the RSI indicator axis was adjusted. Technically, gold has obviously suspended its downward adjustment, and after stabilizing at 2400, a bullish counterattack situation has been formed. The main idea is to rise first and then fall. It is planned to hold on to the 2400 mark and pull back to do more at a low price during the day!
Asian trading strategy:
Short-term gold 2393-2395 long, stop loss 2384, target 2410-2420;
Short-term gold 2418-2420 short, stop loss 2429, target 2400-2390;
Note: The above strategy was updated on July 24.
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