In the European market on Thursday (August 4), the U.S. dollar index maintained a downward trend and was now near 106.30; spot gold accelerated its short-term rise, and the gold price was approaching $1,780 per ounce, rising by more than $13 during the day. Analyze the market outlook for gold prices.
Spot Gold 15 Minute Chart
The dollar is lower as U.S. Treasury yields move lower. The outlook for gold continues to be bullish and is expected to rise towards $1,790 per ounce.
In addition to the weakening of the US dollar, safe-haven buying triggered by tensions in the Taiwan Strait also stimulated stronger gold prices.
The Chinese People's Liberation Army also conducted military drills and live-fire firings in six places in the sea and airspace surrounding Taiwan starting at 12 noon on Thursday. However, according to multiple Taiwanese media reports on Thursday, the military training operations originally scheduled for 6 locations were suddenly increased to 7 on Thursday morning. A new training area was added off the eastern seaboard, and the training time was changed from the original 8 Extended from August 7th to 10am on August 8th.
According to the Eastern Theater Command of the People's Liberation Army news on Thursday, at about 13:00 on August 4, the Army of the Eastern Theater Command of the Chinese People's Liberation Army conducted a long-range firepower live-fire training in the Taiwan Strait and carried out precision strikes on specific areas in the eastern part of the Taiwan Strait. , achieved the expected results.
Tan Kefei, spokesman for the Chinese Ministry of National Defense, pointed out on Thursday that the Chinese military means what it says. The Eastern Theater Command of the Chinese People's Liberation Army organized multi-service targeted drills in the sea and airspace surrounding Taiwan Island to jointly conduct sea assaults, land strikes, air superiority operations and other subjects, and organized live-fire firings of precision-guided weapons. This is a serious response to the collusion between the United States and Taiwan. Shock.
Gold trend analysis
Judging from the gold daily chart, the price of gold has exceeded the high of $1,773 per ounce on July 6. This was also a key resistance level previously.
After breaking through the above resistance, gold bulls continue to aim for a break above the 50-day moving average of $1,790 per ounce. If upward momentum increases after gold prices break above the 50-day moving average, then a test of the $1,800/oz mark will be inevitable.
14-day relative strength index (RSI) remains strong above the midline, giving gold bulls hope.
On the other hand,
, the short-term support level for gold prices is found at $1,760 per ounce. If it falls below this level, gold prices may challenge yesterday's lows again. US$1,754/oz. After this, if gold prices begin a new round of decline, the psychological price of $1,750/ounce and the 21-day moving average of $1,734/ounce will be the next target prices for shorts.
At 17:12 Hong Kong time, spot gold was trading at $1,778.58 per ounce.
