Spot Gold Trading Strategy: Market Awaits Federal Reserve Chairman Appearance and Wary of Possibility of “Hawks”
Spot gold traded in a narrow range during the Asian session on Tuesday (Jan 10) and is currently trading around $1,874.58 an ounce. Investors are worried about US CPI data for December, which will be released this Thursday.
Gold bulls were wary of aggressive speeches by Federal Reserve officials overnight, but China’s reopening after the easing of new krone restrictions has boosted risk appetite, while the US dollar index it hovered near seven-month lows, still providing support to gold prices.
Following the December interest rate decision, speeches by Fed officials have been hawkish and have repeatedly reaffirmed their determination to fight inflation. Before breaking through the 1880 threshold, investors should be alert to the possibility that the speech of Powell is aggressive. time, gold prices may face greater risks.
However, medium-term prospects for the gold market are still biased towards the 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 increase; MACD golden cross, KDJ golden cross, the middle line is close to the long position, before falling below the 10-day average 1839.30, the market outlook will continue to fluctuate upward, 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 strongest resistance is around the April 29 high of 1919.81.
What needs to be remembered is that the MACD’s top divergence signal continues and the KDJ also initially issued a short-term overbought signal. Gold price has been suppressed by the strong resistance around the 1880 mark and the 13 June of 1878.65 on the previous trading day. You need to be alert to the risk of a short-term pullback in the gold price. Initial support is around the 5-day moving average of 1859.76, and strong support is around the 21-day moving average of 1817.56. If it falls below this position, it will raise a bearish signal in the market outlook.
resistence:1880.00；1892.40；1900.00；1909.73；
support:1867.71；1859.76；1839.30；1817.56；
Tips for short-term operation:Conservatives wait and see; radicals are cautious about short-term hikes and cautious long-term bargain hunters.
