Gold price fell, and it could touch $1,765? (with trading strategy)

On Tuesday (22nd September), spot gold fluctuated within a narrow range, at 15:30 (GMT+8), it reported $1902.21, a decrease of 0.533%.

Equities fell out, and the dollar strengthened amid the broad risk-off sentiment in the market," said Janet Mirasola, managing director at Sucden Futures. "Gold was a victim of a stronger dollar."

Bullion has soared 26% this year and reached an all-time high in early August amid bets on a weakening dollar and massive stimulus aimed at reviving pandemic-ravaged economies. The rally has shown signs of stalling in recent weeks, with a resilient dollar and concern over whether the U.S will push through additional stimulus.

Despite the obvious short-term pressure on gold, the support below is still strong.

Gold ETF holdings increased by more than 10 tons for two consecutive trading days. On 21st September, it increased by more than 18 tons, highlighting the influx of low-acceptance purchases, thus limiting the decline of gold. Gold quickly rebounded to $1,900, indicating the overall market Still see more gold prices.

According to Credit Suisse, there is a chance that gold's plunge is not over until a low of $1,765 an ounce is hit. 

However, if a short-term downtrend continues for longer than expected, prices could tumble to $1,765 and even $1,726 an ounce, the bank added. 

Long-term, Credit Suisse is bullish on gold, seeing potential upside of $2,300 an ounce. 

U.S. Federal Reserve Chair Jerome Powell is set to appear before House lawmakers Tuesday. The focus of the hearing will likely fall on fiscal policy, with time running short for Congress to agree on another round of spending measures before it shuts down ahead of November elections.

Trading Strategy (source: Trading Central)

Pivot: 1920.00

Our preference: short positions below 1920.00 with targets at 1882.00 & 1872.00 in extension.

Alternative scenario: above 1920.00 look for further upside with 1927.00 & 1934.00 as targets.

Comment: the RSI advocates for further downside.

Supports and resistances:

1934.00

1927.00

1920.00

1903.80 Last

1882.00

1872.00

1863.00

Guideline for Trading Central strategy 

Trend chart reading guideline

1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days

2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.

3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;

4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.

How to use TC strategy？

1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 

2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.

3. [Alternative scenario] is the plan B for your reference. 

4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 

5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.

Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.