Gold price correction

Opening price 1796.15 Last closing price 1797.39 Lowest price 1795.30 Highest price 1799.65

Gold price correction

On Thursday, because the US retail sales data and China’s GDP data were better than expected, and the European Central Bank remained intact, some investors chose to take profits and therefore pressured gold. However, the recovery of the US job market is slow, and the epidemic continues to spread. At the same time, the Fed may maintain easing for a longer period of time to boost inflation, and the gold price will continue to rise in the medium and long term. Although international trade worries and the spread of the epidemic have pushed safe-haven funds into the US dollar for a short period of time, which has also squeezed gold, but with the loss of the comparative advantage of the US economy, funds will return to gold.

Technical Analysis: Gold

In the evening time, the price of gold dropped downwards due to fundamentals, forming a small trend. The price dropped from 1808 to 1790. The Asian morning opened at 1796.15 and then moved sideways. It is currently at 1799,24.

Intraday 1800 integer is more critical. Above 1800 is still a stable position. The overall upward trend of prices will not change. Intraday can still be bullish overall. At present, the price is in a narrow climb trend, and has not yet touched the position of the Bollinger Middle Rail. The price can be long after standing at 1800 and breaking through the middle rail. Take profit is within the range of 5-10 on the upper rail. The relative strength indicator shows that the market has entered the oversold range, which is related to the last wave of price decline, and the overall trend within the day should be a slow callback and rise.

Day trade strategy: overall bullish, beware of callbacks

Resistance: 1800 1810 1815
Support: 1790 1780 1775

Technical Analyst: Tony Liu