Gold can still be bullish under the callback

Opening price 1959.35 Yesterday closing price 1957.00 Lowest price 1947.49 Highest price 1963.91

Gold can still be bullish under the callback

On Tuesday, spot gold fell more than US$70 to US$1,907.11 after breaking a record high on Tuesday. Investors took a cautious stance before the Fed’s decision and therefore took profits at the record high. However, as the Fed lowered its expectations for economic recovery in the United States and extended its loan facility to the end of the year, it has strengthened market expectations for more stimulus from the Fed. Concerned about the Fed’s resolutions in the day, it is expected that the Fed will continue to stand still, but it may raise its inflation target and hint at more stimulus in September. If it meets expectations, it is expected to push gold prices higher.

Technical Analysis: Gold

Following the pullback in the upward trend of gold on the last trading day, the price jumped at the trough and continued to maintain the upward trend, but the apparent upward momentum was weaker than before. Today’s early trading opened at 1959.35, and oscillated steadily after the opening. There was no trend. The current price is at 1957.75.

On the 1-hour chart, after the price depression formed by the downward correction and rebounding again, no effective V-shaped reversal was formed. The price entered a sideways state before returning to the previous high, indicating that the market needs to further digest the previous excessively fast upward trend. At present, prices are generally still in a sideways rising stage. The Bollinger Band has not yet touched the upper trajectory, and the Bollinger Band exposure is gradually shrinking and merging, indicating that the price will be consolidated within a certain period of time, and there is no obvious trend.

Day trade strategy: Weak warehouse to see more

Resistance: 1965 1970 1980

Support: 1950 1940 1930

Z.com Bullion Analyst: Tony Liu