Home » Gold market analysis: Need to break through the resistance around the 200-day moving average 1794.38 again to open up a new round of upside Provider FX678

Gold market analysis: Need to break through the resistance around the 200-day moving average 1794.38 again to open up a new round of upside Provider FX678

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Gold market analysis: Need to break through the resistance around the 200-day moving average 1794.38 again to open up a new round of upside Provider FX678
Gold market analysis: It is necessary to break through the resistance near the 200-day moving average of 1794.38 to open up a new round of upside

On Tuesday (December 6), the international gold price rose slightly, but the gains were limited by the rebound of the US dollar. At the close, spot gold rose 0.11% to $1770.69 an ounce.

The U.S. November ISM non-manufacturing PMI data released on Monday was very strong, exacerbating market concerns that the Fed may accelerate interest rate hikes, which helped the U.S. dollar index hold key support near a five-month low of 104.63, making gold prices face further corrections risk. Although there is a consensus that more and more expectations will slow down interest rate hikes, interest rate expectations have become increasingly sensitive to upcoming economic data as market participants try to determine the prospects for Fed rate hikes. A case in point was data released on Monday (December 5) showing that activity in the U.S. services sector unexpectedly picked up in November and employment rebounded, further evidence of the strength of the underlying economy. That fueled speculation that the Federal Reserve could raise interest rates more than recently expected, dampening gold’s rally. In addition, the November non-farm payrolls data released last week was much stronger than expected, indicating that overall demand is strong and short-term inflation expectations are still not anchored. Therefore, there is not much room for the dollar to fall before the end of the Fed’s monetary policy meeting next week. While the U.S. economy is showing signs of slowing, it remains healthy. The Federal Reserve has been raising interest rates to slow the economy and thus keep inflation down. Upbeat U.S. data threatened to derail Fed Chairman Jerome Powell’s efforts and dampen expectations for a deceleration in the Fed’s current pace of rate hikes. Some economists analyzed that: “Before the release of November CPI data and the Federal Reserve meeting, the dollar’s downward momentum seems to be limited. Although the shift in momentum signals may put the dollar at a disadvantage in the very short term.

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From a technical point of view, on the daily line level chart, there is a callback after a shock rise; after the strong resistance at the August high point of 1807.72 was falsely broken, the gold price fell rapidly, and it fell consecutively to the 200-day moving average and the 5-day moving average, recording a long shadow line , There is a dead cross trend after the top divergence of MACD, KDJ is relatively high dead cross, the short-term gold price is facing the risk of peaking, the initial support is around 1765.64 on the 10-day moving average, and around 1757.74 on the 21-day moving average. This position needs to be focused on. If this support is lost , then increase the short-term bearish signal. However, since the price of gold has already broken through the resistance near the September 12 high of 1735.02 and completed the confirmation of stepping back, before falling below the 21-day moving average, bulls still have a certain chance in the market outlook, but they need to break through the resistance near the 200-day moving average of 1794.38 again , to open up a new round of upside space.

Bank of China Guangdong Branch Wang Gang
Opinions are personal and do not represent those of the organization

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