Home Forex Markets Gold chug!After the short counterattack failed, the bulls targeted $1980

Gold chug!After the short counterattack failed, the bulls targeted $1980

by WOOWinvest
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Gold chug!After the short counterattack failed, the bulls targeted $1980


Inflation in the United States has cooled significantly, and the U.S. dollar has continued to fall. Although there has been a counterattack during the period, the price of gold has remained firm. The $1,900 has been confirmed to be stable, and the bulls are targeting the $1,980-2,000 area.

U.S. inflation continues to cool, Fed rate hike expectations weaken

In recent months, the main inflation data in the United States has continued to decline, showing that the inflation situation in the United States has been greatly eased. The Fed’s aggressive monetary policy in 2022 has achieved results. Combined with the current signs of economic slowdown, the Fed has the potential to slow down the pace of interest rate hikes. main condition.

The chart comes from DailyfxAsia

Benefiting from the expectation that the Fed is about to reach the end of the interest rate hike cycle, the U.S. dollar has fallen sharply. As investors’ worries about an economic recession intensify, the weakening of the U.S. dollar and risk aversion have made precious metals favored by the market again, and gold prices have resumed their bullish momentum.

In the short term, investors are still focusing on the PCE price index on Friday and the FOMC meeting in early February. Under the atmosphere that the downward trend of inflation has established and most officials of the Federal Reserve tend to raise interest rates by 25 basis points, the counterattack force of the dollar has dropped sharply.

The mid- and long-term fundamentals are gradually turning in favor of the gold price trend.

Never jump headlong into a bad market for fear of missing out on a big move. Once a big trend starts, it lasts longer than most people think.

Gold trend: the uptrend is intact, strong as ever

The price of gold showed a classic upward trend of shocks. It rebounded after stepping back on the trend line, and the bottom continued to rise. It should remain bullish.

Gold chug!After the short counterattack failed, the bulls targeted $1980

At present, the price of gold has 2 trend lines, one is from 1730 US dollars, pointing to the support of 1865-1880, before falling below this point, the rising trend of gold price remains unchanged. The other line starts from $1725, and the nearest support is at $1900. As the price rises, it moves up from 1900 to 1910, and it is strongly bullish above this.

The key resistance above gold is still at $2,000, which is an integer mark and a psychological mark. The continuous rise in the bottom of the gold price pushes the bulls to look at the 1980-2000 area. If the market outlook stands at $2,000, it is expected to start a larger increase, otherwise it will start a stage callback.

Judging from the recent price’s continuous return to $1,900, the short-term short-term pressure is still weakening, and the bullish momentum is increasing. Unless the price encounters resistance between 1950-1980 with the help of sudden news or data, the pressure can regroup and break through $1,900 The pullback situation can only be confirmed after the price is adjusted, otherwise it is better to be bullish before $2,000, supplemented by bearishness.

Looking for support in a rising market to go long, and looking for resistance in a falling market to go short is the way to follow the trend.

(by Arthur)

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