Gold -Trading Strategy for Monday

15 Eyl

Technical analysis of gold: Starting from Thursday this week, after gold broke through the previous historical high, it continued to rise slowly on Friday, and there was no obvious sign of a correction. In this case, we need to be vigilant that bulls will take profits at any time, which may trigger a rapid correction. Rising without adjustment is often accompanied by a rapid decline after a short-term high point. Therefore, it is recommended not to chase the rise easily next week, especially if there is major news on the weekend, you need to be cautious when gold rushes higher on Monday.

Since its rise near 2470, gold has risen close to US$110. Next week's Federal Reserve interest rate decision may become a key node for gold's short-term changes. Before that, gold is expected to remain strong, and short-selling layouts need to pay close attention to this time point. The market generally expects the Fed to cut interest rates, and gold has risen as a result. However, when the news lands, whether the interest rate is cut or not, gold may adjust due to long profit-taking, which is in line with the market law of "buy expectations and sell facts".

Short-term focus:
Support level 2556: This is the starting point of Friday's early trading. If gold remains strong, 2556 will become a watershed between longs and shorts. If the price falls below 2556 on Monday, it may go down to 2545 and then rise again. Therefore, aggressive investors can rely on 2556 to choose a low and follow the long position, while conservative investors can wait for a correction opportunity and go long when it reaches 2550-2545 area, with the target first looking at 2580 area.

Resistance level 2585-2590: There is a risk of profit taking in the short term in this area, and the market may change before and after the Fed's decision. Therefore, it is not advisable to pursue long positions above 2580. It is recommended to wait for the Fed’s decision before paying attention to market signals to decide whether to place short positions.

Operation suggestion:
The short-term operation of next Monday will be mainly long on the callback, supplemented by short on the rebound. The top short-term focus is on the 2585-2590 resistance range, and the bottom short-term focus is on the 2556-2545 support range.