GOLD Will Fall Below 2600??
Updated
Gold Technical Analysis, October 9
The short trend in the gold market has become increasingly clear recently. After several days of rebound and pressure, the price of gold fell sharply yesterday and successfully broke down. This trend is exactly the same as our previous prediction. As early as the beginning of the week, we emphasized that gold had a significant risk of falling back this week, and expected the price of gold to fall to the 2600 line. Yesterday's lowest point reached 2604, which perfectly verified our thinking. The short-selling strategy for two consecutive days starting from Monday has achieved a huge victory.
From the 4-hour chart, the moving average continues to turn downward, and the 1-hour and 30-minute moving averages are also diverging downward. There is still room for gold shorts, which means that the decline has not ended. The rebound is an opportunity to continue shorting. The highest rebound of gold today is around 2625 under pressure and fell back. The two tests directly fell, indicating that the shorts may continue to explore, and gold 2600 may not be able to hold. Today, there is a high probability that it will fall below 2600. Let's wait and see!
To sum up, the short-term operation strategy for gold should be based on shorting on rebounds and supplemented by long on pullbacks.
🔥The upper short-term focus is on the 2624-2628 resistance range
🔥The lower short-term focus is on the 2600-2604 support range
👉Thank you for following and please support us by liking and sharing the post. And leave your views in the comment section
The short trend in the gold market has become increasingly clear recently. After several days of rebound and pressure, the price of gold fell sharply yesterday and successfully broke down. This trend is exactly the same as our previous prediction. As early as the beginning of the week, we emphasized that gold had a significant risk of falling back this week, and expected the price of gold to fall to the 2600 line. Yesterday's lowest point reached 2604, which perfectly verified our thinking. The short-selling strategy for two consecutive days starting from Monday has achieved a huge victory.
From the 4-hour chart, the moving average continues to turn downward, and the 1-hour and 30-minute moving averages are also diverging downward. There is still room for gold shorts, which means that the decline has not ended. The rebound is an opportunity to continue shorting. The highest rebound of gold today is around 2625 under pressure and fell back. The two tests directly fell, indicating that the shorts may continue to explore, and gold 2600 may not be able to hold. Today, there is a high probability that it will fall below 2600. Let's wait and see!
To sum up, the short-term operation strategy for gold should be based on shorting on rebounds and supplemented by long on pullbacks.
🔥The upper short-term focus is on the 2624-2628 resistance range
🔥The lower short-term focus is on the 2600-2604 support range
👉Thank you for following and please support us by liking and sharing the post. And leave your views in the comment section
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According to CME's "Fed Watch" tool, the market generally expects that the Fed will cut interest rates by 25 basis points in November with a probability of 87%, which is significantly smaller than the previous 50 basis points. This weakens the attractiveness of gold as a safe-haven asset. In terms of geopolitics, the expectation that Hezbollah and Israel may achieve a ceasefire has suppressed the safe-haven demand for gold. According to the latest news, Hezbollah's top leaders expressed support for Lebanon's ceasefire efforts, further reducing market concerns about the escalation of the situation in the Middle East. Although geopolitical risks still exist, the market's reaction to them is gradually weakening, which undoubtedly adds downward pressure to the short-term trend of gold.Trade active
The market focus this week is still the policy trend of the Federal Reserve. The Federal Reserve will release the minutes of the September monetary policy meeting on this trading day. If the minutes of the meeting reveal that the Federal Reserve may suspend interest rate cuts or even raise interest rates again, gold will face greater selling pressure. In addition, several Federal Reserve officials will speak on this trading day, including Vice Chairman Jefferson, Richmond Federal Reserve Chairman Barkin, Atlanta Federal Reserve Chairman Bostic, etc. Any comments on the inflation outlook and economic growth may further affect market expectations, thereby causing short-term fluctuations in gold prices.
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