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International gold price is expected to fall below $1614 provider FX678

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International gold price is expected to fall below $1614 provider FX678
The international gold price is expected to fall below $1614

On Friday (October 21), the international gold price continued to hit a new low of $1,619.74 per ounce since September 28, as strong labor market data and hawkish comments from Fed officials weakened the appeal of gold, and 10-year U.S. bond yields The rate hit a record high since June 2008. Gold prices are expected to fall below $1,614.

At 14:46 Beijing time, spot gold fell 0.35% to US$1,621.90 per ounce; the main COMEX gold futures contract fell 0.66% to US$1,626.0 per ounce; the US dollar index rose 0.21% to 113.066.

Stephen Innes, managing partner at SPI Asset Management, said: “The Fed’s tightening cycle is only halfway through, rates may have more room to rise, and gold may continue to fall.” He added that the market will continue to pay close attention to inflation and employment data, if The Fed is expected to suspend interest rate hikes ahead of schedule, which will push gold prices higher.

Data released overnight showed the number of Americans filing for unemployment benefits fell last week, suggesting the labor market remains tight. Separate data showed U.S. existing home sales fell for the eighth straight month in September.

Philadelphia Fed President Harker hinted that the central bank will “continue to raise interest rates for some time” to keep inflation in check, prompting investors to brace for another outsized rate hike by the central bank at its upcoming November policy meeting.

The latest data from CME Group showed that the open interest of overnight COMEX gold futures increased for the third consecutive day, but the increase was only 893 lots; on the contrary, the trading volume fell by more than 16,000 lots, ending the two-day increase. This suggests that gold prices may fall further in the short term.

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FXStreet’s Dhwani Mehta noted: “Bears are now gathering strength and working their way below the 2022 low at $1,614, which in turn will pave the way for a test of the $1,600 round. The 14-day relative strength index (RSI) points to oversold territory below the midline, Indicates more downside.”

On the daily line, the price of gold started a downward iii wave from $1,729, falling below the 38.2% target of $1,655, and the 61.8% target of $1,610 in the market outlook. The iii wave is a sub-wave of the descending (iii) wave that started from $1808, and the (iii) wave belongs to the descending ((iii)) wave that started from $2070. On the hourly chart, the price of gold started a downward ((3)) wave from $1,668, and the bottom support looked at the 61.8% target of $1,614. Wave ((3)) is a sub-wave of wave iii.

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