Spot Gold Technical Analysis
On Wednesday (July 27) in the early Asian market, spot gold fluctuated between 1715.7 and 1719.9 after the opening and is now reported at $1716.8 per ounce. Looking back on yesterday’s market, the gold price on Tuesday showed a fluctuation trend as a whole.
The Asian market started to rise and refreshed the daily high to around 1728. During the European and American market, it fluctuated and fell to be stable at 1713.4, and finally closed at 1717.1 US dollars per ounce, with cross star on the daily line.
On the news, the market is currently waiting for the Fed’s FOMC to announce the interest rate decision in the early morning of the 28th (Thursday). A rate hike seems to be a sure thing, and the focus is on whether to raise rates by 75 basis points or 100 basis points.
The market is generally betting on the Fed to raise interest rates by 75 basis points in July, and if the actual value announced at that time is higher or lower than 75 basis points, there is a chance to trigger a larger market. In addition, Fed Chairman Powell’s speech after the meeting has also attracted much attention, which may provide forward guidance for the September meeting.
Technically, spot gold received doji yesterday, and the market remained volatile within the range. In addition, the market was waiting for the Federal Reserve’s interest rate decision, and there was a lack of news to stimulate.
In 4 hours chart, the price of gold runs below the middle rail of the Bollinger Band, and the Yin K are densely arranged. The power of the bears is relatively strong, so pay attention to the support below 1713/1700/1695; in 1 hour, there is short-term upward momentum, pay attention upward of 1723/ 1728/1732 resistance situation.
In general, before the Fed’s interest rate decision, it is recommended to revolve around the range of highs and lows.
#1: More around 1715-1717, defend 1712, target 1723/1728/1732.
#2: Empty around 1728-1730, defend 1733, target 1723/1715/1707.
Analyst: Mr.Chris Lau, Independent Analyst
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