Analysis of the latest gold market trends:
On Thursday (November 9), the price of gold was trading around US$1,952 per ounce in the Asian market. As concerns about market volatility eased, gold prices plummeted for two consecutive days, and the precious metal seemed to have entered an adjustment phase. Spot gold is currently trading at $1,953.86 per ounce, down 0.78%. Gold prices fell for a third consecutive session on Wednesday. The political risk premium accumulated on precious metals is beginning to fall back. This is because although the situation in the Middle East is unpredictable, wider conflicts have not occurred. Another factor contributing to the weakness in precious metals is reduced demand for safe-haven positions. Recently, the US dollar has continued to rise. Therefore, the fear of missing out drives traders to turn their attention to the stock market rather than non-yielding assets. Investors today need to be aware of the weekly jobless claims report due out this Thursday. The next major report in the US will be the Consumer Price Index on November 14th.
Despite recent market dynamics, there are still reasons to be optimistic about precious metals. That said, one catalyst that could put upward pressure on its price is a pullback in interest rates. Last month, the 10-year U.S. Treasury bond yield exceeded 5.0%, but has since fallen back sharply. Today, the 10- and 30-year U.S. Treasury bond yields fell by at least 5 basis points. If this correction accelerates in the near term, the backdrop for gold and silver will become more constructive. But U.S. Treasury yields, which remain elevated, have fallen back to more than a decade highs, cutting off a major bullish channel for spot gold prices. Gold prices came under selling pressure again on Wednesday as hawkish comments from Federal Reserve policymakers have dominated recent times, raising hopes that the central bank can achieve its goal of curbing inflation. Market participants had hoped for a different tone in Fed Chairman Powell’s speech at the Fed’s statistical meeting. However, the Fed chairman failed to touch on monetary policy, but he will continue to speak tomorrow, when it may still be possible. However, gold prices may struggle to recover as investors become cautious ahead of Fed Powell’s speech.
Gold technical analysis:
Yesterday, the overall technical aspect of gold once again ushered in a weak downward trend and closed at the bottom in the volatile trading. The Asian market slightly surged above the 1970 mark and fell back under pressure and fell into sideways fluctuations. In the afternoon, the European market repeatedly suppressed below the 1968 mark and continued to weaken. In the evening The U.S. market stabilized before and after the 1959 line, and the second pullback came under pressure. The 1966 mark came under pressure again and fell back to continue to fall. In the early morning, the gold price accelerated its downward trend and broke through the 1950 mark to close weakly near 1947. The daily K-line closed suppressed and fell back to break the bottom bardo. The overall price The 1970 mark continues to be under pressure and continues the bearish downward trend of breaking the bottom. Gold is currently showing a continuous decline on the daily trend, forming a small arc top shape. The current K-line continues to be suppressed by the short-period moving average, showing a weak operating state. Although the current price is temporarily running near the early support band around 1950, the strength and continuity of the rebound are not large, so we should pay attention to the possibility of further breaking down on the daily line.
On the 4-hour level, gold continues to be suppressed by the short-term moving average and maintains a good downward trend. In the short term, the price of gold may continue to fall; the current market is in a volatile downward trend, and the decline on Wednesday was not obvious in the Asian and European markets, and was mainly concentrated in the late trading. Therefore, late trading is the focus of a single trading day layout. For a short market, the smaller the rebound, the better, because it indicates that the market is weaker, and the weaker it is, the greater the profit margin for shorting. Therefore, when shorting, don’t wait for a big rebound. Today’s short-term resistance at the top is focused on yesterday’s hourly opening of the U.S. market around 1960-62. During the day, counter-extraction relies on this position to continue to be short and then look for a decline. The target at the bottom continues to focus on breaking the bottom. Recently, the weak dividing line for short positions has moved down to the 1970 line. Any counterattack before the daily level breaks through and reaches this position is a short-selling opportunity. The main tone of participation remains unchanged. Overall, Chen Jinhao recommends today’s short-term operation of gold. The rebound is mainly short-selling, and the callback is supplemented by long-selling. The top short-term focus is on the 1965-1970 first-line resistance, and the bottom short-term focus is on the 1940-1935 first-line support.