Gold returns to the 1720 position again

Opening price 1717.72 yesterday closing price 1718.00 lowest price 1712.20 highest price 1722.39

Gold returns to the 1720 position again

Spot gold fell first and then rose on Friday, because there is news that some banks with gold and silver trading business are preparing to substantially reduce their gold positions in COMEX. Gold once fell by nearly $ 10, but because of international trade concerns and the impact of the epidemic on the global economy , So gold subsequently recovered all the declines. During the day, he paid attention to Fed Chairman Powell ’s speech on monetary policy and expected to continue to reiterate that negative interest rates will not be implemented, but he may convey further stimulus measures and expectations for the US economic outlook, which will have a direct impact on gold.

Technical Analysis: Gold

In the recent trading day, gold fell first and then rose, completing the key pattern of V-reversal and returning to the 1720 position again. It opened at 1719.72 in early trading today. It is currently at 1720.01.

In general, the pattern after the V-shaped reversal has two possible rises and sideways shocks. Looking at the current trend, the sideways trend is more obvious. The main reason is that the Bollinger Bands have narrowed their exposure, the price is in the middle rail position within a few hours, the MACD kinetic energy is moderate, and the DIF line is still above the zero axis driven by rising inertia. The overall signal shows that the trend is unlikely to form in the short term.

RSI shows a neutral position, between 40-50, no overbought and oversold phenomenon.

Day trade strategy: Focus on fundamental information, and generally follow the sideways sorting and shock market operations.

Resistance: 1725 1730 1735
Support: 1715 1710 1700

Z.com Bullion Analyst: Tony Liu