Market News:
Spot gold prices saw a volatile rise in early Asian trading on Tuesday (September 16). Benefiting from the decline in the US dollar and US Treasury yields, as well as high market expectations for a Federal Reserve rate cut this week, London gold prices surged, with both spot gold and futures prices breaking through last week’s record highs. Meanwhile, spot silver continued to approach its highest level since 2011, with the gold and silver index and gold mining stock index both hitting new records! Recent data shows a weakening US job market. The New York Fed’s manufacturing index fell to -8.7 in September, while the consumer price index accelerated due to rising housing and food prices, indicating that inflation remains sticky. Furthermore, political factors are weighing on the Fed’s decision. President Trump continues to push for greater influence on monetary policy, and the Senate may allow his economic advisor Stephen Miran to join the FOMC and vote this week. The strength of international gold isn’t limited to Western markets. Major power factors are quietly becoming a strong driver of the rally. Reports on Monday that a major Asian power may relax gold import and export regulations directly stimulated strong buying. As the Federal Reserve’s interest rate decision approaches, the market is focused on the pace of rate cuts and Chairman Powell’s comments. Gold is expected to continue to benefit from the easing environment and safe-haven demand.
Technical Analysis: Gold’s five consecutive weekly gains have set a new historic high, breaking through 3680 and reaching 3690, putting it just one step away from 3700. Trading with the trend is the only way to achieve steady profits. Profit with the trend and lose against it. It’s better to make a mistake once while trading with the trend than to make dozens of mistakes guessing the top! On the daily chart, gold closed again with a strong bullish breakout pattern, breaking the range of the past four trading days of alternating buy and sell patterns. The price continues to move upward along the lows of the 5-day and 7-day moving averages. The latest 5-day, 7-day, and 10-day moving averages continue to rise, reaching 3656, 3647, and 3623, respectively. The RSI indicator remains at a high of 80. The Bollinger Bands on the four-hour chart are pointing upward, with the price trading within the upper middle Bollinger Band. The moving average is also pointing upward. The RSI indicator has retraced back to the mid-level 50 level before turning upward again, currently trading at 70. The MACD indicator is also showing strong volume. Gold prices are maintaining a strong bullish trend. Trend-following trading strategies should prioritize buying low and selling high.
Trading strategy:
Short-term gold buy at 3671-3674, stop loss at 3662, target at 3690-3710;
Short-term gold sell at 3717-3720, stop loss at 3729, target at 3680-3660;
Key points:
First support level: 3670, second support level: 3663, third support level: 3652
First resistance level: 3697, second resistance level: 3708, third resistance level: 3719
