market trend morning report
precious metals market, spot gold expanded its decline in the US session and once fell to a low of $1621.05, finally closing down 1.3% to $1622.49/oz; spot silver was blocked and fell back at the $19 mark, and finally closed down 2.78% to $18.34/oz.
Basic Analysis of Precious Metals
Analysis of the main influencing factors of the market, the following aspects have a great impact on the price trend of precious metals.
First of all, on Monday, Eastern Time, the U.S. stock market continued to decline. Although the three major indexes all turned up during the session, they turned down again after midday, and expanded their decline in the late trading. Finally, they closed down collectively for five consecutive trading days, including the S&P 500 index and the Dow both fell about 1%. The dollar exchange rate has further strengthened as the Federal Reserve launched a massive hike in and the UK government announced its most aggressive tax cuts in 50 years last week. As of the close, the Dow Jones Index fell 1.11% to 29,260.81 points; the S&P 500 fell 1.03% to 3,655.04 points; the Nasdaq Index fell 0.60% to 10,802.92 points.
Second, the newly appointed Boston Fed Chairman Susan Collins delivered his first policy speech on Monday, reiterating the repeated emphasis of policymakers that making current high inflation cool is the most important. Collins said that although she believes the rate of price increases may have reached or approached its peak, monetary policy needs to be further tightened to allow inflation to fall to its target of 2%. Cleveland Fed Chairman Mester said that it is necessary to see inflation data continue to decline within months, and further rate hikes are necessary. Price stability is the cornerstone of a strong economy. Monetary policy needs to be restrictive on the U.S. economy and maintain that state for months.
Third, as the British government announced the most aggressive tax cut plan in 50 years last week, the pound against the dollar fell to a record low on Monday. The market once expected the Bank of England to urgently take action to stabilize the pound exchange rate , but the central bank only stated that it was closely monitoring the market after the asset prices fluctuated sharply. During the Asian session on Monday, the pound fell nearly 5% against the US dollar to 1.0327, continuing the decline last week. Last Friday, the newly appointed Chancellor of the Exchequer Kwarten unveiled the most aggressive tax cut since 1972 to boost the recession-like British economy. It is estimated that the total tax cuts will reach £45 billion by 2026-27.
fourth, German government officials said that if EU fails to agree on similar measures across the EU, Germany will prepare to implement a national electricity price ceiling this fall. This cap will protect consumers and businesses from further rising energy prices caused by the Russian-Ukrainian conflict. The high price of natural gas has caused more and more manufacturers and service providers to lose money. Officials said that unlike the French limit that restricts energy suppliers from charging end users, the price limit set by Germany will impose taxes on power generators whose fees exceed a certain amount. The funds will then be allocated to network operators selling energy to end users, allowing them to lower prices.
Overall, with the UK's largest tax cut case in recent years, the British pound fell sharply against the US dollar, which also helped the strong US dollar impact on various risky assets, and gold prices fell sharply and broke the bottom again. According to the Fed rate observation tool of CME Group, investors currently believe that the probability of the Fed raising interest rates by 75 basis points again at its policy meeting in November is 70%. Affected by the cycle of interest rate hikes by major central banks, gold prices have fallen sharply this year since the Ukraine-Russia conflict broke out and have fallen by more than $400.
precious metals technology analysis
spot gold
yesterday and fell again, and fell below last week's low in one fell swoop. In terms of intraday operations, the current price is still below the five-day line, and the short-term pattern is bearish. Pay attention to low-broad and high-altitude opportunities in operation. If you want to try long positions, it is recommended to wait until the market stops falling before considering layout. The main pressure is to pay attention to the five-day line ($1659/ounce).
Spot silver
According to the silver one-hour line chart, the same gold price in silver fell yesterday, and the current price fell below the key support of 120MA for four hours, and the overall pattern turned short. However, you can notice that the four-hour RSI indicator shows signs of divergence. In the short term, avoid blindly chasing shorts. In terms of intraday operations, if the previous low is not broken, you can wait for an opportunity to intervene in long positions. The main pressure above is to pay attention to US$18.7 per ounce.
* Get more information, please search and follow the subscription account of "Red Lion Gold" *
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-