Spot gold trading strategy: The market is waiting for the chairman of the Federal Reserve to appear and be wary of the possibility of “hawks”
During the Asian session on Tuesday (January 10), spot gold fluctuated within a narrow range and is currently trading around $1,874.58 per ounce. Before the Fed Chairman Powell’s speech later in the trading day, the market trading sentiment was relatively cautious, and some investment Investors are concerned regarding the U.S. CPI data for December, which will be released this Thursday.
Gold bulls were wary of hawkish speeches from Federal Reserve officials overnight, but China’s reopening following easing new crown restrictions boosted risk-on sentiment, while the U.S. dollar index hovered near seven-month lows, still providing support for gold prices.
Since the interest rate decision in December, the speeches of Fed officials have been hawkish, and they have repeatedly reiterated their determination to fight inflation. Before breaking through the 1880 mark, investors need to beware of the possibility that Powell’s speech is hawkish. At that time, gold prices may face greater risks. callback pressure.
However, in the mid-term, the gold market outlook is still biased towards bulls. The World Gold Council (WGC) explained in its latest report on Monday that “the market consensus for a mild recession appears to be developing, but with the recognition of a more severe recession, it is likely to continue to be bullish for gold.”
Daily level:Unilateral rise; MACD golden cross, KDJ golden cross, the average line is close to the long position, before falling below the 10-day average 1839.30, the market outlook will continue to fluctuate upwards, the initial resistance is around the 1880 mark, and further resistance is around the May 6 high of 1892.40. Then it is around the 1900 mark, and the stronger resistance is around the April 29 high of 1919.81.
What needs to be reminded is that the MACD top divergence signal continues, and the KDJ also initially issued a short-term overbought signal. The gold price was suppressed by the strong resistance around the 1880 mark and the June 13 high of 1878.65 in the previous trading day. It is necessary to be alert to the risk of a short-term pullback in the gold price. The initial support is around the 5-day moving average of 1859.76, and the strong support is around the 21-day moving average of 1817.56. If it falls below this position, it will increase the bearish signal in the market outlook.
resistance:1880.00；1892.40；1900.00；1909.73；
support:1867.71；1859.76；1839.30；1817.56；
Suggestions for short-term operation:Conservatives wait and see; radicals are cautious regarding short-term rallies, and cautious long-term bargain hunters.
