Analysis of gold price trend on Thursday
Updated
Gold fluctuated in a narrow range in the Asian market on Thursday, and is now around 2510. Gold prices bottomed out and rebounded on Wednesday, falling below 2500 during the session, but then quickly rebounded. The U.S. Department of Labor revised down employment data, and the minutes of the last Fed meeting showed that policymakers strongly preferred to cut interest rates at the September policy meeting. The U.S. dollar and U.S. Treasury yields continued to fall, continuing to support gold prices. In addition, the Gaza ceasefire negotiations were deadlocked, which also provided safe-haven support for gold prices.
U.S. Treasury yields fell on Wednesday, also providing support for gold. The downward revision of employment data and the minutes of the Fed's July meeting strengthened people's expectations that the Fed will eventually cut interest rates in September, which will be the first rate cut by the Fed in more than four years. The yield of the 10-year U.S. Treasury bond also hit a new low of more than two weeks at 3.761%.
[Technical side]
The overnight sharp wash of gold has made the price of gold regain some support. The daily line forms a red and green alternating cycle, and the overall high-level consolidation around the upward trend is carried out. The daily MA10/7-day moving average continues to open upward to 2494/2481, and the RSI indicator is flat at a high of 70. The closing price of the Bollinger band on the short-term four-hour chart is in the middle track adjustment to form a wide range of fluctuations. The moving average system is glued together, and the RSI indicator returns to the central axis. Thursday's trading is mainly based on the trend, relying on the 2500 mark to be bullish!
Trading strategy:
2498-2500 long, stop loss 2489, target 2530-2540;
2528-2530 short, stop loss 2540, target 2500-2490;
U.S. Treasury yields fell on Wednesday, also providing support for gold. The downward revision of employment data and the minutes of the Fed's July meeting strengthened people's expectations that the Fed will eventually cut interest rates in September, which will be the first rate cut by the Fed in more than four years. The yield of the 10-year U.S. Treasury bond also hit a new low of more than two weeks at 3.761%.
[Technical side]
The overnight sharp wash of gold has made the price of gold regain some support. The daily line forms a red and green alternating cycle, and the overall high-level consolidation around the upward trend is carried out. The daily MA10/7-day moving average continues to open upward to 2494/2481, and the RSI indicator is flat at a high of 70. The closing price of the Bollinger band on the short-term four-hour chart is in the middle track adjustment to form a wide range of fluctuations. The moving average system is glued together, and the RSI indicator returns to the central axis. Thursday's trading is mainly based on the trend, relying on the 2500 mark to be bullish!
Trading strategy:
2498-2500 long, stop loss 2489, target 2530-2540;
2528-2530 short, stop loss 2540, target 2500-2490;
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