Fundamental Analysis:
Last week, due to different opinions of Fed officials, gold price fell into shock. The mutated virus pandemic has increased the demand for safe-haven gold, but Biden and the two parties have reached an agreement on a reduced infrastructure plan, putting pressure on gold price.
This week would have lots of significant data, the most important one is the US non-farm report. It might allow the Fed to firm up its gradual tightening policy tone. Current market agrees on that the number of non-farm employment will increase by 600,000, and the unemployment rate is expected to drop slightly from 5.8% to 5.7%. A stronger-than-expected non-farm data would boost the US dollar, thereby suppress gold price.
This Tuesday would have US consumer confidence data, this Thursday would have PMI data.
Technical Analysis:
The 4-hour level of gold price has suppressed by the RSI 50level and Bollinger Band upper track. The Bollinger Band continues to flatten, and the price fluctuates between the upper and lower tracks. MACD downward momentum gradually decrease and nearly reach 0 level. The daily Bollinger Band turns downwards, and gold price is near the lower track. Last week, the trend was generally weak, and it was suppressed from 1790-95. Today’s strategy is a combination of doing short at high price and doing long at lower price. We focus on resistance near 1795, and support at 1765.
Today’s strategy:
Strategy 1: short position near 1790-95, take profit 1775, stop loss 1797
Strategy 2: long position near 1773-4, take profit 1790, stop loss 1765
Last week, due to different opinions of Fed officials, gold price fell into shock. The mutated virus pandemic has increased the demand for safe-haven gold, but Biden and the two parties have reached an agreement on a reduced infrastructure plan, putting pressure on gold price.
This week would have lots of significant data, the most important one is the US non-farm report. It might allow the Fed to firm up its gradual tightening policy tone. Current market agrees on that the number of non-farm employment will increase by 600,000, and the unemployment rate is expected to drop slightly from 5.8% to 5.7%. A stronger-than-expected non-farm data would boost the US dollar, thereby suppress gold price.
This Tuesday would have US consumer confidence data, this Thursday would have PMI data.
Technical Analysis:
The 4-hour level of gold price has suppressed by the RSI 50level and Bollinger Band upper track. The Bollinger Band continues to flatten, and the price fluctuates between the upper and lower tracks. MACD downward momentum gradually decrease and nearly reach 0 level. The daily Bollinger Band turns downwards, and gold price is near the lower track. Last week, the trend was generally weak, and it was suppressed from 1790-95. Today’s strategy is a combination of doing short at high price and doing long at lower price. We focus on resistance near 1795, and support at 1765.
Today’s strategy:
Strategy 1: short position near 1790-95, take profit 1775, stop loss 1797
Strategy 2: long position near 1773-4, take profit 1790, stop loss 1765