FPG8.20 gold analysis

Gold settled around 2,500 yesterday, fell to an intraday low of around 2,485, and closed back 2,500. Gold prices have risen more than 26% from their lowest position this year, driven by the Federal Reserve's interest rate cut expectations, geopolitical safe-haven factors, and central banks' support for gold. As far as this week is concerned, the market's focus is on the Middle East's Palestinian-Israeli cease-fire negotiations and the threat from Iraq and Israel, as well as Powell's public remarks. Judging from historical trends, there is a negative correlation between the US dollar and gold. The downturn in the US dollar led to a rise in gold. In the past, when the US entered the interest rate cut cycle, only when the US chose a hard landing during the 2008 financial crisis, every interest rate cut cycle led to a rise in gold. Although the current forecast for a hard landing in the US is less than 25%, the market is still full of uncertainty.

On the technical side, gold rose strongly on Friday. It was sorted out yesterday Monday. The intraday low hit around 2,485, but all of them opened and closed above 2,500. Since the global collapse on August 5, the price of gold has continued to fluctuate upward in the upward channel. The central axis of the channel divides the price. The price rebounded after yesterday's low hit the central axis, and is currently in the upper half of the movement. We need to pay attention to the supporting effect of the central axis on the gold price. Enter the market carefully, follow the trend, and stop losses strictly.

The upper line resistance is 2510, the second line resistance is 2515, and the third line resistance is 2520.

The lower line supports 2500, the second line supports 2495, and the third line supports 2485.

This advice is general and does not take into account your specific financial situation and needs. Investments involve risk, so be sure to evaluate them carefully.