Spot Gold Technical Analysis

In early Asian trading on Monday (January 9), spot gold continued its upward trend at the opening, and the price of gold is now reported at $1,872.1 per ounce. Looking back at the market last Friday, the overall price of gold showed a fluctuating upward trend, and recovered the decline of last Thursday. The market fluctuated around the 1833-1840 range during the Asian and European trading hours. It fell back and finally closed at 1865.6 US dollars per ounce, and a Zhongyang K line was closed on the daily line.

On the news side, the U.S. economic data released last Friday night was mixed. Among them, the U.S. unemployment rate and seasonally adjusted non-agricultural employment data in December performed better than expected, but the growth rate was limited. For example, the non-agricultural employment population increased by 223,000, It was the slowest increase since December 2020. The data showed that the growth of the U.S. job market was slowing down, and higher interest rates were hurting the development of the real economy. Therefore, although the non-agricultural data was negative for gold, the strength was not strong, which made gold prices go out of the market performance that fell first and then rose. Previously, some officials of the Federal Reserve had stated that they would continue to raise interest rates this year to curb inflation, and at the same time would slow down the pace of interest rate hikes depending on the situation. However, there are still many differences on how to slow down. Therefore, it is necessary to pay attention to the speech of Federal Reserve Chairman Powell this Tuesday. , which may reveal the direction of the Fed’s monetary policy.

On the technical side, the opening of spot gold continued Friday’s rally, and the strength was quite strong. The market pierced the upper track of the Bollinger Bands on the daily line and within the 4-hour period; on the 1-hour chart, the Bollinger Bands opened upwards, and the KD indicator was at a high level A golden cross is formed, but the fast line shows signs of abduction. Although the current bulls are strong, it is not recommended to chase up and buy, and the price of gold is close to the upper resistance of 1878, and the market may have a chance to correct.

Resistance position: 1878/1885/1890

Support location: 1865/1860/1855

Investment Advice:

Empty around 1876-1878, defend 1882 and target 1866/1861/1856.

Analyst: Mr.Chris Lau, an independent analyst