Gold prices may still have room to plummet!Market news:
In the early Asian session on Friday (May 2), spot gold fluctuated narrowly at a low of more than two weeks and is currently trading around $3,235/ounce. London gold prices fell 1.5% on Thursday, hitting an intraday low of $3,201/ounce, the lowest since April 14. The signal of easing trade tensions suppressed the safe-haven buying demand for international gold. The rise in the US dollar and US bond yields also suppressed gold prices, and the largest gold consumer country is on consecutive holidays. Investors will usher in the US non-farm payrolls report on Friday, which is expected to trigger a big market trend. Gold is affected by multiple negative factors: the US dollar index rebounded to a high of 104.88 due to the hawkish stance of the Federal Reserve, suppressing the attractiveness of gold pricing; the easing of the situation in the Middle East and the passage of the US military aid bill weakened the safe-haven demand; the US Dow Jones surged more than 1,000 points in a single day, triggering funds to turn to risky assets; the technical overbought (RSI reached 75) triggered programmed selling, and the leveraged funds stampede exacerbated volatility; the real focus of the market has now shifted to tonight's non-agricultural data. If the non-agricultural data confirms the weakness of the labor market, gold may stop falling and rebound, while the US dollar and US bond yields may continue to be under pressure; on the contrary, strong non-agricultural data may restore confidence in the US dollar, and gold needs to be wary of the risk of a correction.
Technical Review:
Gold stopped at 3202/3205, and after a second dip in the late trading, it bottomed out and rebounded, and the bulls counterattacked and closed above the 3230 mark. Let's look at the strength of the rebound during the day, and it is expected to continue to fluctuate in a cycle. Technically, the daily line has a continuous negative structure, which maintains a bias towards selling. The rebound selling layout is the main one, and the low-price buying is auxiliary. The gold daily line level includes a negative hammer line with a certain lower shadow. After opening high and moving low, the gold price has stabilized and fluctuated after touching the 3200 area. The upper resistance level is running around the 3250 level. After further breakthrough, gold is expected to change the pattern of selling pressure.Today's key data: Non-agricultural data at 20:30, the previous value is 228,000, and the market estimate for this period is only 130,000. According to the market estimate, it is bullish for gold and silver, but it should be noted that the actual value announced is greater than the expected value of 130,000, and the actual value announced is between the previous value and the estimated value. Form a decline first and then rise!
Today's analysis:
Gold rebounded weakly, and it is still a selling trend. Gold broke down yesterday and fell, and then fluctuated at a low level, but the trend is still selling. The rebound is an opportunity to sell. Today's non-agricultural data, before the data, continue to rebound and sell first! Before the market reverses, the rebound is an opportunity to sell. There is no bottom for the decline, just continue to sell along the trend. Today is the key to whether the market will turn around. If gold does not break 3200 today, then there is a chance for buying gold! The 1-hour moving average of gold continues to cross the downward selling arrangement and diverge. There is still room for gold to go down. The 1-hour gold rebounded in the early trading and was under pressure near 3244 and fell directly. Then gold continued to go short at highs below 3244 in the early trading. If it breaks through 3244, then gold will have to pay attention to the resistance near the last low of 3260. Today is the non-agricultural data, which is also an important date for the market to have a turning point. If gold starts to close with a big positive line at the bottom today, then this round of gold adjustment may be temporarily over.
Operation ideas:
Buy short-term gold at 3205-3208, stop loss at 3196, target at 3260-3280;
Sell short-term gold at 3250-3253, stop loss at 3263, target at 3220-3200;
Key points:
First support level: 3223, second support level: 3210, third support level: 3192
First resistance level: 3250, second resistance level: 3262, third resistance level: 3280
Goldmansachs
9.2 Analysis of short-term gold operationsGold is long near 2490.
In the 4-hour period, there is a pressure level of 2530 on the top and a first-line support of 2492 on the bottom (it cannot fall after being touched multiple times). It is not a unilateral trend at present, so it still takes a long time to fall back. The middle track of the Bollinger Bands runs horizontally, and the price of gold is supported by the lower track of the Bollinger Bands. You can go long if it is close to 2492.
There is non-agricultural data this week. Gold will definitely break this week. The shock pattern between 2492-2530 will not last long. If you grasp the signal well, the big market is about to emerge.
Trading strategy: Gold is long near 2492, stop loss is 2482, target is 2510
What kind of analysis and suggestions do you have on the trend of gold? Everyone is welcome to like and comment.
Gold: Latest Trading Strategies
Fundamentals of Gold:
In early Asian trading on Monday, March 13th, spot gold maintained its strong upward trend, with the price hovering around $1881 per ounce, up nearly $15 on the day. Earlier, the price of gold had risen more than $20, as the Fed's "rescue" action sparked an increase in market risk appetite, which dealt a major blow to the dollar and stimulated a surge in gold prices. After Silicon Valley Bank's bankruptcy, the Fed announced a new emergency loan program on Sunday to strengthen the banking system's capacity, which will help ensure that banks have the ability to meet the needs of all depositors and prevent other banks from experiencing similar runs.
Currently, the probability of the Fed raising interest rates by 50 basis points in March has plummeted from 75% to less than 10%, and the probability of a 50 basis point hike in May has been wiped out. There are increasing calls in the market for the Fed to consider pausing or even cutting interest rates. The Fed and the U.S. Treasury's emergency measures to support banks have been well-received by the market, improving risk appetite and dealing a blow to the dollar. Market anxiety is also running high ahead of this week's U.S. consumer price index (CPI) report, especially after Fed Chairman Powell recently emphasized that the pace of tightening will be based on "overall data".
Technical Analysis of Gold:
After the release of the non-farm payroll report last Friday night, the market's expectations for a 50 basis point rate hike by the Fed in March cooled somewhat, and the U.S. dollar index continued to dive, nearly breaking through the 104 level. Driven by the risk aversion sparked by Silicon Valley Bank's collapse and the non-farm payroll report, spot gold broke through three key levels of $1850, $1860, and $1870, before giving back some gains to close up 1.97% at $1867.03 per ounce, marking a new closing high since February 10th and achieving two consecutive weeks of gains. The highest point of gold was around 1869, with the closing price settling around 1867 in the following period.
On the 4-hour chart, a bottom-up rebound wave broke through the secondary high of 1858 to form a reversal, while the double bottom rebound of 1805 and 1810 formed a 4-hour double bottom rebound, with the neckline of 1858 forming a breakthrough. The top-bottom reversal this week has changed from resistance to support at 1858, which is the reversal point of the neckline and also the support of the bulls. The 4-hour chart also shows a bottom-up rebound, which is also an upward wave, with a wave of 1810 forming a surge in volume, and after a retracement, it is gathering strength again.
In the beginning of the week, pay attention to the second rebound support point. In the short term, there may be some back and forth, as this is the first upward reversal and the moving average indicator has not yet turned upward, so short-term consolidation is needed. On the 1-hour chart, gold is oscillating upwards based on the middle rail. Last Friday, it broke through 1858 and retraced to 1854 before stabilizing, which is also the strong and weak critical point of this week, and strength will not break below 1854. In the Asian session, there is a gap in prices, so it is not urgent to chase the high, wait for the gap to be filled before participating in a low long position.
Trading Strategy:
Short around $1885, take profit at $1870-1865;
Long around $1865, take profit at $1880-1890
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