Gold rises. Latest analysis.Key Points:
With the federal government shutdown, Trump's consideration of firing federal employees has dampened risk appetite. The White House said the layoffs will begin soon, and Trump plans to meet with White House budget director Russell Vought to discuss the cuts.
The government shutdown has halted the release of US economic data, and Fed officials' speeches have become a substitute for data, with every statement being over-interpreted by the market.
The non-farm payroll data failed to be released as scheduled, marking the first time since 2013 that a government shutdown has delayed the release of key data, further increasing market uncertainty about the economic situation and Fed policy.
Market Analysis:
Although gold prices retreated during the European session, the factors supporting the long-term uptrend remain intact. From the 4-hour chart, the current important support level is at the 38603865 area where the MA5, 10 and 20 moving averages intersect. Although the RSI14 period indicator fell slightly, it still remained above the midline. Judging by the indicator data, any dip in price is likely to be bought quickly.
Due to the data blank period on Friday, the price is likely to remain volatile at a high level today. Quaid recommends that you wait and see for a short period of time. Consider a small long position if the price pulls back to around 3860.
