Gold prices plummet. Is this a trend change?Information Summary:
The US government shutdown has entered its third week due to Congress's failure to pass an appropriations bill. According to US Treasury officials, the shutdown could cost the US economy up to $15 billion per week. The market generally believes that if the fiscal deadlock continues, the US dollar will come under further pressure, thereby supporting the price of gold denominated in US dollars. However, the current gold price trend is driven by both macroeconomic factors and sentiment. Amidst expectations of interest rate cuts and the continued risk of a fiscal shutdown, gold prices still have short-term upward momentum. However, as geopolitical tensions gradually ease, gold's safe-haven properties may gradually weaken.
Market Analysis:
Currently, with the Federal Reserve reiterating its expectation of an interest rate cut this year, the market has reacted strongly, with the US dollar showing significant room for decline and gold experiencing a sharp rise, currently reaching a high of 4,380. The market unexpectedly fell sharply during the U.S. trading session, hitting a low of around 4218, with the price falling 160 points. However, in the current high-level fluctuations, the overall situation is to wait for the price to fall back to the key support point before going long.
On the whole, the short-term focus on the upper side is the 4280-4300 resistance of this rebound, and the short-term focus on the lower side is the strong support of 4200-4180.
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