Market News Gold market analysis: light trading on Thanksgiving Day, gold rebounded slightly and settled
Gold market analysis: light trading on Thanksgiving Day, gold rebounded slightly and settled
On Thursday (November 25), spot gold closed at US$1,788.85 per ounce, a slight increase of US$0.61 or 0.03%. The highest in the day reached US$1,794.94 and the lowest reached US$1,785.90. In the US Thanksgiving Day market trading was light, gold's slight rebound was temporarily settled.
2021-11-26
12238
On Thursday (November 25), spot gold closed at US$1,788.85 per ounce, a slight increase of US$0.61 or 0.03%. The highest in the day reached US$1,794.94 and the lowest reached US$1,785.90. In the US Thanksgiving Day market trading was light, gold's slight rebound was temporarily settled.
Due to the US Thanksgiving holiday on Thursday, gold trading was relatively light. Due to the expected high inflation data in the near future, gold still has some potential for recovery. But in essence, because the Fed is implementing a plan to reduce its debt purchases, this should push up real interest rates in the later stages, thereby continuing to put pressure on gold prices. Although gold is considered a tool to hedge against rising inflation, raising interest rates tends to push up government bond yields, thereby increasing the opportunity cost of holding gold. The minutes of the Fed’s last policy meeting showed that more and more policymakers said that if inflation remains high, they are willing to accelerate the cancellation of bond purchase plans and accelerate the pace of interest rate hikes. In recent economic data, the number of initial jobless claims in the United States fell to the lowest level since 1969 last week, indicating that economic activity is accelerating. Another report released by the US Department of Commerce on Wednesday showed that the US gross domestic product (GDP) increased by 2.1% in the third quarter, and price pressures intensified in October. The US Personal Consumption Expenditure (PCE) price index (excluding highly volatile food And energy content) rose 0.4%. Following the strong US economic data on Wednesday (including a sharp drop in the number of initial jobless claims last week), when the Federal Reserve holds its next meeting on December 14-15, calls for an accelerated reduction in debt purchases are expected to rise.
Technically, the price of gold showed an oversold adjustment posture, and it was close to testing the key resistance of $1,79.00 per ounce. But from the 4-hour chart, the stochastic indicator has lost its positive momentum and is close to the overbought area. Currently, it is waiting for this factor to push the gold price to resume its downward trend. The next target is 1770.00-1750 US dollars per ounce. Unless the price of gold rebounds above $1,79.00 per ounce and remains above this level, the bearish trend has not yet reached the time to reverse. Once the top breaks above $1,787.00/ounce, this will push the price of gold to start a rebound attempt, and first test the 1825.15 area.
Only personal views, not representative of the views of the organization
Source: Bank of China's official website, Bank of China Guangdong Branch Wang Gang, original title: "20211126—Thanksgiving Day Trading is Light, Gold Rebounds Slightly"
Due to the US Thanksgiving holiday on Thursday, gold trading was relatively light. Due to the expected high inflation data in the near future, gold still has some potential for recovery. But in essence, because the Fed is implementing a plan to reduce its debt purchases, this should push up real interest rates in the later stages, thereby continuing to put pressure on gold prices. Although gold is considered a tool to hedge against rising inflation, raising interest rates tends to push up government bond yields, thereby increasing the opportunity cost of holding gold. The minutes of the Fed’s last policy meeting showed that more and more policymakers said that if inflation remains high, they are willing to accelerate the cancellation of bond purchase plans and accelerate the pace of interest rate hikes. In recent economic data, the number of initial jobless claims in the United States fell to the lowest level since 1969 last week, indicating that economic activity is accelerating. Another report released by the US Department of Commerce on Wednesday showed that the US gross domestic product (GDP) increased by 2.1% in the third quarter, and price pressures intensified in October. The US Personal Consumption Expenditure (PCE) price index (excluding highly volatile food And energy content) rose 0.4%. Following the strong US economic data on Wednesday (including a sharp drop in the number of initial jobless claims last week), when the Federal Reserve holds its next meeting on December 14-15, calls for an accelerated reduction in debt purchases are expected to rise.
Technically, the price of gold showed an oversold adjustment posture, and it was close to testing the key resistance of $1,79.00 per ounce. But from the 4-hour chart, the stochastic indicator has lost its positive momentum and is close to the overbought area. Currently, it is waiting for this factor to push the gold price to resume its downward trend. The next target is 1770.00-1750 US dollars per ounce. Unless the price of gold rebounds above $1,79.00 per ounce and remains above this level, the bearish trend has not yet reached the time to reverse. Once the top breaks above $1,787.00/ounce, this will push the price of gold to start a rebound attempt, and first test the 1825.15 area.
Only personal views, not representative of the views of the organization
Source: Bank of China's official website, Bank of China Guangdong Branch Wang Gang, original title: "20211126—Thanksgiving Day Trading is Light, Gold Rebounds Slightly"
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