Tuesday Market Analysis and Signals
In the Asian market on Tuesday, gold fluctuated in a narrow range and is currently trading around $2,642 per ounce. The price of gold fell by nearly 1% on Monday, and once lost the 2,630 mark during the session, which is exactly where the 10-day moving average support is located. It is also the lowest since September 24. Because the speech of Federal Reserve Chairman Powell is hawkish, the market's expectations for the Federal Reserve to cut interest rates by 50 basis points in November have been reduced. The rebound of the US dollar and US Treasury yields has put pressure on gold prices to pull back. However, the ongoing conflicts in the Middle East and the entry of most central banks in the world into a cycle of interest rate cuts still provide support for gold!
Driven by the loose monetary policy of the United States and the intensification of tensions in the Middle East, gold has experienced a historic rise recently. In the third quarter of 2024, gold has risen by more than 13%. Last Thursday, it hit a record high of $2,685, which was mainly driven by the Federal Reserve's half-percentage point cut and the outbreak of war in the Middle East. It should be reminded that when the rise in gold prices is blocked, investors need to beware of the risk of further correction in gold prices.
The Eurozone September CPI data will be released on this trading day. Investors need to pay attention to it, focusing on the US September ISM manufacturing PMI, the US August JOLTs job vacancy data, and the news related to the geopolitical situation. Continue to pay attention to the speeches of Fed officials.
[Technical side]
Gold closed sharply higher on the monthly line, with the long upper shadow 2685/2680 historical high forming a short-term effective high resistance. The daily line fell back yesterday after a high rise and adjusted to the MA10 daily moving average at 2664. The short-term four-hour chart Bollinger band opened downward and the price was in the middle and lower track channel of the Bollinger band. The RSI indicator broke through the middle axis 50 and turned downward. The hourly moving average bonded the price Bollinger band and narrowed. Gold traded high and bought low on Tuesday!
Asian trading strategy:
2622-2624 long, stop loss 2613, target 2640-2650;
2643-2645 short, stop loss 2654, target 2620-2610;
Driven by the loose monetary policy of the United States and the intensification of tensions in the Middle East, gold has experienced a historic rise recently. In the third quarter of 2024, gold has risen by more than 13%. Last Thursday, it hit a record high of $2,685, which was mainly driven by the Federal Reserve's half-percentage point cut and the outbreak of war in the Middle East. It should be reminded that when the rise in gold prices is blocked, investors need to beware of the risk of further correction in gold prices.
The Eurozone September CPI data will be released on this trading day. Investors need to pay attention to it, focusing on the US September ISM manufacturing PMI, the US August JOLTs job vacancy data, and the news related to the geopolitical situation. Continue to pay attention to the speeches of Fed officials.
[Technical side]
Gold closed sharply higher on the monthly line, with the long upper shadow 2685/2680 historical high forming a short-term effective high resistance. The daily line fell back yesterday after a high rise and adjusted to the MA10 daily moving average at 2664. The short-term four-hour chart Bollinger band opened downward and the price was in the middle and lower track channel of the Bollinger band. The RSI indicator broke through the middle axis 50 and turned downward. The hourly moving average bonded the price Bollinger band and narrowed. Gold traded high and bought low on Tuesday!
Asian trading strategy:
2622-2624 long, stop loss 2613, target 2640-2650;
2643-2645 short, stop loss 2654, target 2620-2610;
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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.