Friday market analysis, continue to see new highs
Gold held near its all-time high on Friday, now at $2,570. Gold prices rose more than 2% on Thursday, hitting a record high, driven by expectations of a rate cut by the Federal Reserve next week, after data showed a slowdown in the U.S. economy. In addition, the ECB's rate cut also reduces the opportunity cost of holding gold, and geopolitical concerns continue to provide safe-haven buying support for gold prices.
Gold prices soared to a record high after U.S. initial jobless claims and producer inflation data further indicated that the Federal Reserve may cut interest rates next week. The European Central Bank cut interest rates again on Thursday and hinted that borrowing costs will be on a "downward path" in the coming months. Currently, inflation in the eurozone is slowing, and the ECB's further rate cut has raised expectations that many central banks around the world will cut interest rates multiple times in the future, increasing the attractiveness of gold.
Pay attention to the U.S. import price index in August, the preliminary value of the U.S. University of Michigan Consumer Confidence Index in September, the eurozone finance ministers' meeting, and news related to the geopolitical situation during this trading day.
Technical aspect
Technical aspect: Gold hit a new record high, breaking the wide range of 2530~500 this week. The daily increase is close to 50 US dollars. The MACD momentum column of the short-term four-hour chart is large, and the RSI indicator is close to 80, close to the overbought zone. The price runs along the upper track of the Bollinger Band, and the moving average golden cross opens upward. Technically, the structure of gold's bullish trend is intact. It is expected that there will be at least one bullish sprint to a new high on Friday. The trading idea is to go long at a low price. In short, don't guess the top. You will find that trading will be simple and easy if you follow the trend.
Trading strategy:
2548-2550 long, stop loss 2539, target 2570-2580;
2577-2579 short, stop loss 2588, target 2550-2540;
Gold prices soared to a record high after U.S. initial jobless claims and producer inflation data further indicated that the Federal Reserve may cut interest rates next week. The European Central Bank cut interest rates again on Thursday and hinted that borrowing costs will be on a "downward path" in the coming months. Currently, inflation in the eurozone is slowing, and the ECB's further rate cut has raised expectations that many central banks around the world will cut interest rates multiple times in the future, increasing the attractiveness of gold.
Pay attention to the U.S. import price index in August, the preliminary value of the U.S. University of Michigan Consumer Confidence Index in September, the eurozone finance ministers' meeting, and news related to the geopolitical situation during this trading day.
Technical aspect
Technical aspect: Gold hit a new record high, breaking the wide range of 2530~500 this week. The daily increase is close to 50 US dollars. The MACD momentum column of the short-term four-hour chart is large, and the RSI indicator is close to 80, close to the overbought zone. The price runs along the upper track of the Bollinger Band, and the moving average golden cross opens upward. Technically, the structure of gold's bullish trend is intact. It is expected that there will be at least one bullish sprint to a new high on Friday. The trading idea is to go long at a low price. In short, don't guess the top. You will find that trading will be simple and easy if you follow the trend.
Trading strategy:
2548-2550 long, stop loss 2539, target 2570-2580;
2577-2579 short, stop loss 2588, target 2550-2540;
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