Analysis of gold price trend on Wednesday
Updated
The dollar and Treasury yields edged lower, with gold hovering near the all-time highs reached in July, after U.S. producer price data solidified hopes for a September rate cut by the Federal Reserve. The generally positive tone in the stock market has weakened demand for traditional safe-haven assets.
Traders are now looking forward to the U.S. Consumer Price Index (CPI) data for July, which will be released on Wednesday, and retail sales data on Thursday. The data could provide further direction for the Fed's next policy move. In addition to the U.S. CPI data, investors need to continue to pay attention to news related to the geopolitical situation and pay attention to New Zealand's interest rate decision during this trading day.
[Technical side]
Today's market focus is on CPI data. The importance of CPI data is the same as that of NFP. CPI data is one of the important indicators showing no inflation, which affects the Fed's monetary policy decisions. The market trend structure has not changed so far. After the daily line closed with a small negative, the price is still running above the MA5-day moving average at the 2460 mark, the RSI indicator remains above the central axis, the hourly Bollinger Bands narrow to 2458/2472, and the four-hour moving averages are glued together.
Gold has been fluctuating and accumulating momentum in the past two days. If there is no big correction in today's CPI, if gold does not go down, it is to accumulate momentum for an increase. Gold will approach a record high. After breaking through the record high, gold will directly hit 2500.
Gold's 1-hour moving average continues to form a golden cross and the bulls diverge upward. The opening continues to widen. Gold is very bullish and will continue to rise. Gold has repeatedly tested the 2458 support and stabilized. At 2458, gold will continue to maintain a bullish trend and continue to be bullish.
Trading strategy:
2455-2458 long, stop loss 2446, target 2480-2490;
2481-2483 short, stop loss 2492, target 2450-2460;
Traders are now looking forward to the U.S. Consumer Price Index (CPI) data for July, which will be released on Wednesday, and retail sales data on Thursday. The data could provide further direction for the Fed's next policy move. In addition to the U.S. CPI data, investors need to continue to pay attention to news related to the geopolitical situation and pay attention to New Zealand's interest rate decision during this trading day.
[Technical side]
Today's market focus is on CPI data. The importance of CPI data is the same as that of NFP. CPI data is one of the important indicators showing no inflation, which affects the Fed's monetary policy decisions. The market trend structure has not changed so far. After the daily line closed with a small negative, the price is still running above the MA5-day moving average at the 2460 mark, the RSI indicator remains above the central axis, the hourly Bollinger Bands narrow to 2458/2472, and the four-hour moving averages are glued together.
Gold has been fluctuating and accumulating momentum in the past two days. If there is no big correction in today's CPI, if gold does not go down, it is to accumulate momentum for an increase. Gold will approach a record high. After breaking through the record high, gold will directly hit 2500.
Gold's 1-hour moving average continues to form a golden cross and the bulls diverge upward. The opening continues to widen. Gold is very bullish and will continue to rise. Gold has repeatedly tested the 2458 support and stabilized. At 2458, gold will continue to maintain a bullish trend and continue to be bullish.
Trading strategy:
2455-2458 long, stop loss 2446, target 2480-2490;
2481-2483 short, stop loss 2492, target 2450-2460;
Trade active
Gold has not stabilized yet. It fell to 2455 and rebounded to 2462.5, running 70pips profit. There is still a risk of falling. It may test the support of the dense trading area of 2450. Now you can try to sell gold
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