Spot Gold Technical Analysis

On Wednesday (October 26) in the early Asian market, spot gold fluctuated within the small area after the opening bell, and is now reported at $1,652.4 per ounce. Looking back on yesterday’s market, the gold market fell first and then rose on Tuesday, out of the V-shaped reversal. The price of gold fluctuated and fell in the Asian session. It continued to fall in the European session and refreshed the daily low to around 1637.9. During the US session, the market reversed, recovered the decline and refreshed the daily high to 1662.1, then fell under pressure and finally closed at 1652.9 US dollars per ounce.  There is a doji on the daily line..

On the news, the exchange rate of the pound against the US dollar soared, while the US dollar fell under pressure due to the remarks of the new British Prime Minister Sunak. The U.S. economic data released yesterday showed that the recent performance of the U.S. economy was slightly weaker. After the data was released, the US dollar fell rapidly, and the market bred the sentiment that the interest rate hike would hurt the real economy, which led to the cooling of expectations for the Fed to raise interest rates. At the same time, the Fed issued a signal that it may intervene in the U.S. Treasury market, which led to a drop in the yield on the 10-year U.S. Treasury bond.

Technically, in the daily chart, yesterday, affected by the fall in the yields of the US dollar and US bonds, the price of gold rose sharply by more than US$20 in the short-term. . In the 4-hour cycle, the previous K-line closed out a doji, the current market saw a short-term rise, the Bollinger Bands opened up, and the KD indicator was dead. In 1 hour, the market started an upside based on the position of the middle rail, the Bollinger Band expanded, and the KD indicator was golden. In general, if the market fails to effectively break through 1662/1668, it will continue to oscillate. The following will focus on the support of 1643/1635, and observe the strength of the market before making arrangements.

Resistance positions: 1662/1668/1675

Support position: 1643/1635/1630

Investment Advice:

#1: Empty around 1665-1667, defend 1670, target 1655/1650/1645.

#2: More around 1643-1645, defend 1640, target 1655/1660/1665.

Analyst: Mr.Chris Lau, Independent Analyst