Spot Gold Technical Analysis

In early Asian trading on Tuesday (October 25), spot gold rose first and then fell after the opening bell. The gold price hit 1654.7 and then fell under pressure and is now reported at $1649.7 per ounce. Looking back on yesterday’s market, the overall gold market on Monday showed a volatile downward trend. After hitting the daily high of 1670.6, the gold price began to fall, and the European and American markets continued to decline. Take out a Yin K.

On the news, in order to curb inflation, the Fed has raised interest rates by 300 basis points since March this year, and the market expects the Fed to raise interest rates by another 75 basis points at the November meeting on interest rates. Federal Reserve Governor Waller said in his earlier speech that he would consider tightening the pace of interest rate hikes in December, but other Fed officials also expressed the hope that before slowing down the pace of interest rate hikes, they hope to see inflation effectively curbed, otherwise they will remain Or increase the rate of interest rate hikes. The differences within the Fed also seem to confirm the market’s prediction that inflation will remain high in a short period of time, and the Fed has the opportunity to continue raising interest rates.

In terms of geopolitics, the situation in Russia and Ukraine seems to have changed. On Monday, Russia accused Ukraine of possessing the technology to create “dirty bombs” and suspected that Ukraine would use such non-nuclear radioactive bombs on the battlefield. Western countries have warned that Russia may use this as an excuse to escalate the situation. If the situation worsens, it may boost the market’s risk aversion.

Technically, yesterday’s market closed out Yin K, the longer upper shadow line represents that there is still strong resistance above, and 1668-1670 builds a short-term resistance level. In the 4-hour cycle, the three K-lines stopped falling at around 1643 yesterday, effectively verifying the support of this position. The Bollinger Bands opened upwards, and the KD indicator formed a golden fork upwards, showing signs of rising. In the 1 hour, the Bollinger Band narrowed, the price of gold is currently hovering near the middle rail, and the KD indicator is dead. All in all, first wait and see the 1-hour market breakout situation. If there is a pullback in the market, place more orders based on the support position. If it breaks first, observe whether the resistance is effective.

Resistance positions: 1658/1668/1675

Support position: 1643/1635/1630

Investment Advice:

In the vicinity of 1643-1645, the defense is at 1638, and the target is 1653/1660/1668.

Analyst: Mr.Chris Lau, Independent Analyst