Analysis of gold price trend on Monday
Updated
At the beginning of the Asian session on Monday, gold once soared by nearly $15, breaking through the 2,400 mark. The price of gold rose by 1% last Friday because although the US PCE data was stronger than market expectations, it failed to change the market's expectations of the Fed's interest rate cut in September, and bargain hunting poured in to support gold prices. In addition, factors such as concerns about the geopolitical situation in the Middle East and the uncertainty of the US election have led to a rebound in the safe-haven demand for international gold.
As tensions in the Middle East escalated suddenly over the weekend, the Israeli Security Cabinet has authorized Israeli Prime Minister Netanyahu and Israeli Defense Minister Galant to take military action against Hezbollah in Lebanon in response to Hezbollah's rocket attack on the Golan Heights town of Mejdar Shams on July 27. Market concerns about escalating tensions in the Middle East have intensified, providing further momentum for gold prices in the short term.
This week will see the release of the Federal Reserve's interest rate decisions, the Bank of Japan's decisions and the Bank of England's interest rate decisions, as well as important economic data such as the eurozone's second quarter GDP, China's official manufacturing PMI, US JOLTs job vacancies, US ISM manufacturing PMI, and US non-farm payrolls report. This can be described as a super week, and investors need to make time arrangements and position adjustments in advance.
Technical side
The tension in the Middle East during the gold weekend triggered risk aversion, and gold opened sharply higher to 2403. Technically, the MA10-day moving average high at 2420 on the daily chart opened downward, and the 10-day moving average has moved down to 2413. The MA5/7-day moving average at 2390/2392 has flattened, and the RSI indicator has adjusted its central axis. The technical side of the gold daily line is relatively wide-ranging. The short-term four-hour chart price stands on the middle track of the Bollinger band and overlaps with the MA5-day moving average at 2390. The gold market is mainly involved in the layout of range fluctuations at the beginning of the gold week, and sell high and buy low!
Asian trading strategy:
Gold 2382-2384 long, stop loss 2373, target 2400-2410;
Gold 2400-2402 short, stop loss 2411, target 2380-2370;
Note: The above strategy was updated on July 29.
As tensions in the Middle East escalated suddenly over the weekend, the Israeli Security Cabinet has authorized Israeli Prime Minister Netanyahu and Israeli Defense Minister Galant to take military action against Hezbollah in Lebanon in response to Hezbollah's rocket attack on the Golan Heights town of Mejdar Shams on July 27. Market concerns about escalating tensions in the Middle East have intensified, providing further momentum for gold prices in the short term.
This week will see the release of the Federal Reserve's interest rate decisions, the Bank of Japan's decisions and the Bank of England's interest rate decisions, as well as important economic data such as the eurozone's second quarter GDP, China's official manufacturing PMI, US JOLTs job vacancies, US ISM manufacturing PMI, and US non-farm payrolls report. This can be described as a super week, and investors need to make time arrangements and position adjustments in advance.
Technical side
The tension in the Middle East during the gold weekend triggered risk aversion, and gold opened sharply higher to 2403. Technically, the MA10-day moving average high at 2420 on the daily chart opened downward, and the 10-day moving average has moved down to 2413. The MA5/7-day moving average at 2390/2392 has flattened, and the RSI indicator has adjusted its central axis. The technical side of the gold daily line is relatively wide-ranging. The short-term four-hour chart price stands on the middle track of the Bollinger band and overlaps with the MA5-day moving average at 2390. The gold market is mainly involved in the layout of range fluctuations at the beginning of the gold week, and sell high and buy low!
Asian trading strategy:
Gold 2382-2384 long, stop loss 2373, target 2400-2410;
Gold 2400-2402 short, stop loss 2411, target 2380-2370;
Note: The above strategy was updated on July 29.
Trade active
Daily support is around 2370, try to go long, target 2380~2385Trade active
Get 40pips quickly Trade active
+80pips Reached near target 2380 Trade active
Huge profit from two trades today. 
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.