Gold prices rose in late Asian trading hours.
In the morning, gold prices stabilized above $3,250 as investors returned to defensive assets due to continued uncertainty in the US trade agreement with China and Japan, and increased geopolitical tensions in the Middle East and Ukraine.
The weak dollar before the Fed meeting and the decline in expectations for rate cuts also supported gold demand. The market focus remains on US trade news and the hawkish stance that the Fed may take this week.
Quaid's analysis of market views:
1. Despite the short-term adjustment in the market, the bullish logic of gold still exists, and bullish investors are more willing to buy when the price is low. The continued volatility of US government policies and the slowdown in US economic growth constitute strong support for gold.
2. During the previous Asian holiday, the gold market fell to the key support of $3,200. After the opening, Yanzhou buyers quickly bought at a low price, causing gold to rise rapidly in the short term.
Quaid believes that from a technical point of view, the gold price has reached the bottom resistance level of the range. If the price of gold does not react to the false breakout and continues to hit 3315-3320, then a breakout and consolidation above this level will strengthen it to 3320-3350.
Upward resistance: 3315, 3320, 3350
Downward support: 3265, 3250, 3220
Since the opening, the price of gold has retested 3269 twice. Buyers are testing the resistance level in the hope of a breakout. If the bulls break through 3315-3320 and consolidate above 3310, the possibility of an upside move will be high. However, the possibility of another test of the liquidity area of 3250 before the upside move cannot be ruled out.
If the price of gold breaks through the upward resistance, traders can try to go long in the short term and conduct scalping.
On the contrary, if the price of gold fluctuates sideways in the 3310-3315 range, Quaid recommends shorting in this range.
In the morning, gold prices stabilized above $3,250 as investors returned to defensive assets due to continued uncertainty in the US trade agreement with China and Japan, and increased geopolitical tensions in the Middle East and Ukraine.
The weak dollar before the Fed meeting and the decline in expectations for rate cuts also supported gold demand. The market focus remains on US trade news and the hawkish stance that the Fed may take this week.
Quaid's analysis of market views:
1. Despite the short-term adjustment in the market, the bullish logic of gold still exists, and bullish investors are more willing to buy when the price is low. The continued volatility of US government policies and the slowdown in US economic growth constitute strong support for gold.
2. During the previous Asian holiday, the gold market fell to the key support of $3,200. After the opening, Yanzhou buyers quickly bought at a low price, causing gold to rise rapidly in the short term.
Quaid believes that from a technical point of view, the gold price has reached the bottom resistance level of the range. If the price of gold does not react to the false breakout and continues to hit 3315-3320, then a breakout and consolidation above this level will strengthen it to 3320-3350.
Upward resistance: 3315, 3320, 3350
Downward support: 3265, 3250, 3220
Since the opening, the price of gold has retested 3269 twice. Buyers are testing the resistance level in the hope of a breakout. If the bulls break through 3315-3320 and consolidate above 3310, the possibility of an upside move will be high. However, the possibility of another test of the liquidity area of 3250 before the upside move cannot be ruled out.
If the price of gold breaks through the upward resistance, traders can try to go long in the short term and conduct scalping.
On the contrary, if the price of gold fluctuates sideways in the 3310-3315 range, Quaid recommends shorting in this range.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.