Analysis of the latest gold market trends:
Analysis of golden news surface:
In the European market on Friday (October 27), the price of gold was trading around US$1,985 per ounce. Gold prices continued to strengthen on Thursday. The demand for traditional safe-haven assets helped gold offset the economic recovery to a large extent. of joy. It can be analyzed from the trend of gold prices that investors’ concerns about the possible escalation of the war between Israel and Hamas still exist. That kept safe-haven demand for gold upbeat even as the U.S. dollar and Treasury yields surged in overnight trading. However, although gold is subject to certain safe-haven demand, it is affected by US economic data. A sharp rebound in U.S. third-quarter gross domestic product data has improved investor risk appetite, but is also expected to give the Federal Reserve more room to keep interest rates higher for longer. U.S. data released on Thursday was the first estimate of third-quarter GDP, with the overall figure growing 4.9% year-on-year, slightly stronger than expected, while expectations were for a 4.7% growth, compared with a 2.1% growth in the second quarter. However, the inflation data in the GDP data was mild, which to some extent alleviated the negative impact of better overall data on precious metals prices. Federal Reserve officials have left the door open to raising interest rates at least once this year, saying rates will remain higher for longer amid sticky inflation and a strong economy. Given that higher interest rates push up the opportunity cost of investing in gold, it will squeeze gold’s upside. Any potential de-escalation in Israel’s war with Hamas could also weaken safe-haven demand for gold. Economists believe that gold is likely to be on the defensive in the short term unless political risks escalate due to the dual impact of rising U.S. Treasury yields and a stronger U.S. dollar. However, the situation in the Middle East still worries investors, risk aversion still exists, and gold prices are still rising.
Gold technical analysis:
Looking at gold’s daily line, after a series of factors, gold continues to strengthen in the short term. The daily K has recovered the negative line of this week, showing a bullish pattern. At present, there is great suppression above the 2000 mark. From a technical point of view, the moving averages are trending upward, and there is no sign of a turning point. The MACD energy column remains stable, and the fast and slow lines have a golden cross upward, showing a bullish pattern. However, KDJ is glued in the overbought area, and there is a risk of high retracement. From a comprehensive daily perspective, the overall trend is still bullish.
Judging from the golden 4 hours, the short-term surge was followed by a correction, and the current short-term market does not look strong. 2000 is the key suppression point. From the moving average point of view, it is still an upward trend, the MACD energy column shrinks, the fast and slow lines are bonded, the KDJ three lines are downward, and the K line has emerged from an irregular shape. On the whole, the 4-hour trend is in a range, but the overall trend is still strong. After all, the risk aversion sentiment still exists. Therefore, it is not recommended to buy the top rashly, and it is still mainly bullish on the callback.
On Thursday, the bulls once again tested above 1990, but due to the adverse impact of GDP data, they failed to make further gains and did not set a new high, so they fell back under pressure. After falling back to test the 1971 line, we found that the hourly line basically had no entity and was all shadow lines, highlighting the strong support in the 1970 area. Overall, gold’s offensive is insufficient, and its downward trend is also restricted by multiple supports. After days of decline, the lows are gradually rising and the highs are gradually moving up, indicating that bulls are gradually taking advantage. Generally speaking, the gold market is suppressed at the 2000 mark, but the overall trend is still bullish. In terms of operation, it is recommended that the callback is mainly bullish.
The current gold market is showing a volatile upward trend, and the lows are gradually rising. As the lows move upward, the current support position is around 1975, which is also the position to enter long after a retracement during the day. However, there is suppression above 1997, so this trading day we will temporarily plan around high shocks, focusing on the opportunity for the 1975 support to fall back to the long side, and at the same time pay attention to whether the suppression zone of the previous high of 1997 can be broken through. On the whole, today’s short-term operation of gold suggests that the main approach is to push back to lows and longs, supplemented by rebounding from highs. The top short-term focus is on the 2000-2005 first-line resistance, and the bottom short-term focus is on the 1975-1970 first-line support.
Disclaimer: Views shared are for reference only and do not constitute investment advice. Investment involves risks, and you must be responsible for any profits or losses.