Spot gold fell sharply by more than 1% on Friday (October 28), and is currently trading around $1,643. Gold originally fluctuated above 1660 during the day, and once measured the pressure to near the short-term trend line pressure of 1666/67. However, during the afternoon session, the US dollar index suddenly rebounded strongly again, resulting in a large pullback in gold.
The initial value of the US real GDP annualized quarterly rate in the third quarter was 2.6%, setting a new high since the fourth quarter of 2021, and had previously recorded negative growth for two consecutive quarters. US President Biden then stated that the third quarter GDP report has further proved that the US economic recovery process is continuing to advance. The US dollar has reached the 111 mark, and gold has also fallen below 1640 again.
Gold originally used the 1660-1655 trend to support the development of the third wave of recovery trend, but was severely suppressed by the US index again, and the market turned to a downward trend. It has fallen to around 1640 at the moment. Although there are signs of stopping the decline, the rebound momentum seen is not strong. If the market cannot return above 1660 in the evening, there may be further decline adjustments, and it may even affect the expectation of a revision and adjustment at the beginning of next week. At the top of the evening, we will pay attention to the short pressure band test of 1657-1660, and at the bottom, we will continue to pay attention to the short-term support of 1640-1638. At present, the 10-day line 1648 support has been punctured, which will increase the possibility of the short-term market further expanding the downward space. If the US index continues to be stronger, the fundamentals of will show negative stimulation again. Before the Federal Reserve's interest rate decision next week, gold is even allowed to retreat to the previous low of 1620-1615 to find support. It is necessary to have this awareness of prevention.
Gold operation strategy: near 1640-1642 to go long , defend 1637, and look at 1650-1655 on the target;
This article was written by Shen Yunce. I mainly focus on commodities such as gold, silver, crude oil, foreign exchange, etc., and have conducted in-depth research on the market. Because the online issuance of documents is delayed and timely, it is recommended for reference only. The specific operation is subject to actual trading guidance!
