Gold is difficult to rebound, US political turmoil raises cautious mood (with trading strategy)
Gold prices rose slightly on Wednesday as the recent rebound in US dollar and U.S. Treasury yields has been suspended, and the surge in global new crown cases has also enhanced the attractiveness of gold.

Spot gold rose 0.1% to US$1,856.86 per ounce, while US gold futures rose 0.8% to US$1,858.10 per ounce.
Silver was steady at US$25.57 per ounce; platinum rose 0.3% to US$1,078.80, and palladium fell 0.4% to US$2,382.44.
The benchmark 10-year U.S. Treasury yield fell from a 10-month high, dragging the dollar down and reducing the cost of buying gold for holders of other currencies.
The national political turmoil is the key driving factor. US President Trump’s backlash bill has not yet ended. Violent protests at the Capitol have escalated the difficulty of security deployment for the Democratic presidential candidate Biden’s inauguration and continued to create caution for gold buyers. . In addition, the market is still optimistic about the future. Fed members and European Central Bank President Lagarde's speeches, as well as the US CPI, are suppressing the difficulty of gold's rebound.
Rosengren, president of the Federal Reserve Bank of Boston, said on Tuesday that with the popularization of vaccines, the US economy may recover strongly in the second half of this year, but the development of the epidemic is still affecting the economy and monetary policy will remain loose.
It is worth noting that most of the Fed policymakers’ recent remarks have indicated that from the second half of this year, Biden is expected to bring a larger fiscal stimulus package to the United States. The optimism of joint vaccination has also encouraged the gold bulls.
Trading strategy (Source: Trading Central)
Pivot: 1863.75
Our preference: short positions below 1863.75 with targets at 1828.00 & 1817.00 in extension.
Alternative scenario: above 1863.75 look for further upside with 1876.00 & 1893.00 as targets.
Comment: the RSI shows downside momentum.
Supports and resistances:
1893.00
1876.00
1863.75
1842.70 Last
1828.00
1817.00
1806.50
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.
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