Analysis of gold price trend on Friday
Updated
In the early Asian session on Friday, gold fluctuated in a narrow range and is currently trading around 2424. Gold prices rose by more than 1% on Thursday, ending the previous five consecutive trading days of decline. Despite the rise in the US dollar and US Treasury yields, gold still soared by nearly $45. Helped by strong safe-haven demand and growing expectations that the Federal Reserve will cut interest rates sharply in September!
In terms of geopolitics, the increasingly tense situation in the Middle East has increased people's safe-haven demand for gold. Gold prices are seen as a hedge against geopolitical and economic uncertainties and tend to thrive in a low-interest rate environment. Although market sentiment remains optimistic, people are worried that Iran and Lebanon will retaliate against Israel soon.
It should be reminded that US Treasury yields also rose sharply on Thursday, with the 10-year US Treasury yield rising by 1.32%, rising for three consecutive trading days, closing at 3.997%, a nearly one-week high, which slightly limited the rise in gold prices, and investors need to be vigilant.
[Technical side]
Gold daily K rose sharply, and the hourly chart W bottom pattern broke the downward trend line. Gold prices rose sharply to above 2427 in late trading, and the four-hour chart rose strongly, with the daily line above the MA10 daily average of 2414. Today's idea is to go long on low prices during the day, and it is expected to fall after another high in the European and American markets.
Trading strategy:
2408-2410 long, stop loss 2398, target 2430-2340;
2440-2442 short, stop loss 2451, target 2410-2400;
In terms of geopolitics, the increasingly tense situation in the Middle East has increased people's safe-haven demand for gold. Gold prices are seen as a hedge against geopolitical and economic uncertainties and tend to thrive in a low-interest rate environment. Although market sentiment remains optimistic, people are worried that Iran and Lebanon will retaliate against Israel soon.
It should be reminded that US Treasury yields also rose sharply on Thursday, with the 10-year US Treasury yield rising by 1.32%, rising for three consecutive trading days, closing at 3.997%, a nearly one-week high, which slightly limited the rise in gold prices, and investors need to be vigilant.
[Technical side]
Gold daily K rose sharply, and the hourly chart W bottom pattern broke the downward trend line. Gold prices rose sharply to above 2427 in late trading, and the four-hour chart rose strongly, with the daily line above the MA10 daily average of 2414. Today's idea is to go long on low prices during the day, and it is expected to fall after another high in the European and American markets.
Trading strategy:
2408-2410 long, stop loss 2398, target 2430-2340;
2440-2442 short, stop loss 2451, target 2410-2400;
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