On Thursday (November 3), the international gold price was generally stable, as the Federal Reserve issued some conflicting signals, the gold price failed to extend the overnight decline. But the gold price continued to bearish in the market outlook, with short-term support at $1,625. For the bulls to relieve the pressure, a convincing weekly close above $1,687 is needed.
At 14:58 Beijing time, spot gold sank 0.01% to US$1,635.04 per ounce; the main COMEX gold futures contract sank 0.76% to US$1,637.1 per ounce; the US dollar index hovered around 112.123.
Spot gold rose as much as 1.3% after the Federal Reserve ended its two-day meeting and issued a policy statement, but soon gave up all gains and turned down, closing down nearly 0.8%. Ilya Spivak, foreign exchange strategist at DailyFX, said gold had a wild swing after a number of conflicting signals from the Federal Reserve.
The U.S. central bank raised interest rates by 75 basis points for the fourth time in a row overnight on schedule and said the fight against inflation will require further increases in borrowing costs. But the Fed also hinted that tightening may be near an inflection point. “The Fed has a way to adjust rates until policy reaches a sufficiently stringent level,” Chairman Powell said at a news conference.
Spivak added that a decisive moment for the gold market will come after the release of the U.S. non-farm payrolls report for October on Friday (Nov. 4). Break the lower end of the range ($1,615) and try to extend down in a more meaningful way.”
Credit Suisse strategists expect: “Gold fell below $1691/76, consolidating its existing huge ‘double top’. Therefore, after the top is formed, we expect gold to be under pressure again against the dollar. We note the next support The level is $1614, then $1560, and ultimately our core target is $1451/40. Only a convincing weekly close above the 55-day SMA at $1687 will ease the pressure on the precious metal, and the next resistance will be Appearing at the more important 200-day moving average, currently at $1,808, we expect resistance here.”
On the hourly chart, the price of gold started a downward iii wave from $1,669, and the bottom support looked at the 100% target of $1,625. The iii wave is a sub-wave of the downward (iii) wave that starts from $1675, and the 61.8% target of the (iii) wave is $1605. On the daily chart, (iii) wave is a sub-wave of the downward ((iii)) wave that started from $1808.