Tuesday Market Analysis and Signals
Updated
In the early Asian session on Tuesday, spot gold fluctuated in a narrow range and is currently trading around $2,641 per ounce. Gold prices fluctuated and fell 0.38% on Monday, rising to around $2,660 at the highest point during the session and hitting a low of $2,637. Federal Reserve officials said that it is not appropriate to relax monetary policy excessively. Recent employment data is good, and investors have lowered their expectations for the Federal Reserve to cut interest rates sharply in November. The US dollar remains strong, and the US Treasury yield has risen above 4% for the first time in two months, which has also put pressure on gold prices!
The US dollar hovered at its highest level in seven weeks, making gold denominated in US dollars more expensive for investors holding other currencies. The US 10-year Treasury yield broke through 4% for the first time in more than two months on Monday, which means that the opportunity cost of holding gold has increased, reducing the attractiveness of gold. In the short term, gold prices are still facing the risk of further correction in the short term, but the prospect of further interest rate cuts by major central banks around the world and geopolitical tensions still attract bargain hunting and safe-haven buying to support gold prices. This will limit the correction space for gold prices.
On this trading day, we need to pay attention to the US trade account in August, continue to pay attention to the speeches of Fed officials and news related to the geopolitical situation, and pay attention to the impact of the performance of global stock markets on risk aversion.
[Technical side]
Huang Jin continued to fluctuate and adjust in a wide range, consolidating around the triangle range of the hourly chart, and continue to pay attention to the intraday adjustment of the 2630/2670 range. The 4-hour moving average has already crossed, and it has not been able to break through the moving average after multiple upward surges. The 2652 line has become a barrier. There is also an important signal, that is, no news that is bullish on gold has pushed it up, and the gold price may turn down at any time!
Asian market trading strategy:
2630-2632 long, stop loss 2621, target 2650-2660;
2652-2654 short, stop loss 2663, target 2630-2620;
The US dollar hovered at its highest level in seven weeks, making gold denominated in US dollars more expensive for investors holding other currencies. The US 10-year Treasury yield broke through 4% for the first time in more than two months on Monday, which means that the opportunity cost of holding gold has increased, reducing the attractiveness of gold. In the short term, gold prices are still facing the risk of further correction in the short term, but the prospect of further interest rate cuts by major central banks around the world and geopolitical tensions still attract bargain hunting and safe-haven buying to support gold prices. This will limit the correction space for gold prices.
On this trading day, we need to pay attention to the US trade account in August, continue to pay attention to the speeches of Fed officials and news related to the geopolitical situation, and pay attention to the impact of the performance of global stock markets on risk aversion.
[Technical side]
Huang Jin continued to fluctuate and adjust in a wide range, consolidating around the triangle range of the hourly chart, and continue to pay attention to the intraday adjustment of the 2630/2670 range. The 4-hour moving average has already crossed, and it has not been able to break through the moving average after multiple upward surges. The 2652 line has become a barrier. There is also an important signal, that is, no news that is bullish on gold has pushed it up, and the gold price may turn down at any time!
Asian market trading strategy:
2630-2632 long, stop loss 2621, target 2650-2660;
2652-2654 short, stop loss 2663, target 2630-2620;
Trade active
Yesterday's long and short signals all reached their targets
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