Analysis of FPG gold trend on September 16

Gold/United States Dollar range on the 4-hour chart.

With only 2 days left until the Federal Reserve interest rate decision, the market continues to ferment expectations of a rate cut by the Federal Reserve. According to this morning's data from cme, the market's expectation of a 50 basis point rate cut by the Federal Reserve in 2 days has surged to 52%. In terms of geopolitics, air raid sirens have been sounded in central and southern Israel, and the conflict between Russia and Ukraine has escalated. The escalation of geopolitical tensions, coupled with the decline of the US dollar, has led to a frenzy in precious metals, with spot gold hitting a historical high of 2586 and gold futures surpassing the 2600 mark. However, it is also important to note that gold has risen significantly, and after the rate cut decision, long positions may be profit-taking. Ahead of the interest rate decision, the US has the August retail sales data release on Tuesday, which could have a major short-term impact on gold.

Technically, gold did not pull back after hitting a new high on Thursday and continued its upward trend on Friday. Currently, it is only turning around at 2586. A potential upward channel may form on the 4-hour timeframe. Before the Fed interest rate cut is announced, it is worth paying attention to the range of historical highs at 2586 and the top and bottom conversion range below at 2531. Focus on the starting point of the increase on Friday at 2560. Exercise caution in chasing the high and be wary of any pullbacks.

The upper resistance levels are at 2580, 2586, and 2590.

The lower support levels are at 2565, 2560, and 2555.

# This recommendation is general in nature and does not take into account your specific financial situation and needs. Investing involves risks, please make sure to evaluate carefully. #