Fundamental analysis:
Spot gold price fell on Wednesday and closed at US$1803.66 per ounce; rising U.S. bond yields and the continued rebound in the stock market weakened the demand for safe-haven;
a series of corporate earnings reports shifted the market’s attention to the economic impact of the COVID-19 and boosted the US stock market; 10-year period U.S. Treasury yields rose further above 1.2%, and the decline in safe-haven demand weakened the attractiveness of gold. Despite this, concerns about the spread of delta variant still exist, and traders have reduced their bets on the Fed to raise interest rates for this reason, and it is expected that ultra-easing policies may need to be maintained. For investors looking for clues to stimulus policies, the US unemployment claims report on Thursday will be the next key data. After rebounding in recent weeks, the price of gold has stabilized at around US$1,800 per ounce, but even if the US inflation-adjusted yield fell further in the negative range, the price of gold could not rise further. Some market strategists said that the stock market breathed a sigh of relief, and U.S. bond yields and oil prices rebounded again. These are signs of re-inflation trading, which is not good for gold. At the same time, it also stated that the inflationary environment of accelerating economic growth and rising inflation is beneficial to silver, platinum and palladium, and these metals also have industrial uses.
Technical analysis:
From the daily chart, gold price stepped on the mid-track of the daily Bollinger Bands. After being continuously suppressed by the Fibonacci 38.2% level, prices fell back and returned below the RSI50 axis. MACD downward momentum came to an end. The 4-hour Bollinger Bands turns down, MACD began to show downward momentum, RSI operates below the 50 area, but the weak decline of the US dollar index temporarily slowed the continued decline of the price of gold, pay attention to the performance of the 1800 breakthrough in the Asian market, If the European market breaks through 1800 and continues to rise, then it will again step on the important resistance of 1815-1818 for 4 hours.
Today’s strategy:
1. Short position 1810, take profit 1799, stop loss 1830
2. Long position 1793, take profit 1798, stop loss 1788
Spot gold price fell on Wednesday and closed at US$1803.66 per ounce; rising U.S. bond yields and the continued rebound in the stock market weakened the demand for safe-haven;
a series of corporate earnings reports shifted the market’s attention to the economic impact of the COVID-19 and boosted the US stock market; 10-year period U.S. Treasury yields rose further above 1.2%, and the decline in safe-haven demand weakened the attractiveness of gold. Despite this, concerns about the spread of delta variant still exist, and traders have reduced their bets on the Fed to raise interest rates for this reason, and it is expected that ultra-easing policies may need to be maintained. For investors looking for clues to stimulus policies, the US unemployment claims report on Thursday will be the next key data. After rebounding in recent weeks, the price of gold has stabilized at around US$1,800 per ounce, but even if the US inflation-adjusted yield fell further in the negative range, the price of gold could not rise further. Some market strategists said that the stock market breathed a sigh of relief, and U.S. bond yields and oil prices rebounded again. These are signs of re-inflation trading, which is not good for gold. At the same time, it also stated that the inflationary environment of accelerating economic growth and rising inflation is beneficial to silver, platinum and palladium, and these metals also have industrial uses.
Technical analysis:
From the daily chart, gold price stepped on the mid-track of the daily Bollinger Bands. After being continuously suppressed by the Fibonacci 38.2% level, prices fell back and returned below the RSI50 axis. MACD downward momentum came to an end. The 4-hour Bollinger Bands turns down, MACD began to show downward momentum, RSI operates below the 50 area, but the weak decline of the US dollar index temporarily slowed the continued decline of the price of gold, pay attention to the performance of the 1800 breakthrough in the Asian market, If the European market breaks through 1800 and continues to rise, then it will again step on the important resistance of 1815-1818 for 4 hours.
Today’s strategy:
1. Short position 1810, take profit 1799, stop loss 1830
2. Long position 1793, take profit 1798, stop loss 1788