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Market News Gold market analysis: the price of gold can break through 1775/80 US dollars to alleviate the bearish pressure
Gold market analysis: the price of gold can break through 1775/80 US dollars to alleviate the bearish pressure
To eliminate the negative bias, gold needs to break through $1833, and the downward pressure remains unabated in the short term, even after being sold at $50.
2021-09-17
7958
On Thursday night (September 16), the US August retail sales data unexpectedly increased, which intensified market concerns about the tightening of Fed policy, and gold futures and spot prices plunged rapidly. Gold once dived from the price of about 1796.7 US dollars per ounce and fell below 1750 US dollars. At one time, it plunged nearly 50 US dollars, hitting a minimum of 1744.60 US dollars per ounce.
US retail sales exceeded expectations in August, after falling 1.8% in July, it rose 0.7% in August. The market’s general forecast is a drop of 0.8%. The unexpected increase in US retail sales in August has partially alleviated concerns about a sharp slowdown in economic growth. The signs of a strong economic recovery have sparked speculation that policymakers may soon reduce stimulus measures. The strong U.S. retail sales data boosted the U.S. dollar and added justification for betting that the Federal Reserve may accelerate the reduction in debt purchases. U.S. Treasury yields and the U.S. dollar expanded their gains, reducing the demand for non-interest-bearing precious metals. Judging from the recent performance of gold, it seems that investors’ interest in gold investment seems to be incapable of fighting spirits. When the yields of US bonds fell, they did not perform, but when the yields rose, they accelerated and fell sharply. This is a very unhealthy phenomenon. Just like yesterday, strong retail sales have intensified concerns about accelerated underweights, exposing them to risks. Gold has suffered a considerable blow. As the U.S. dollar and U.S. Treasury yields rise, As well as the release of stronger data, we can see the gold bulls rushing out of the market. Now unless there are some geopolitical events or the Fed unexpectedly reveals strong dovish intentions, the downward trajectory of gold is unlikely to change before the Federal Open Market Committee (FOMC) meeting.
In the past two weeks, despite increasing calls for caution on the US stock market, the price of gold has not rebounded sharply. The sharp drop in gold led to a decline in technical indicators. The relative strength index is at the extreme level of oversold, but it is still pointing downward, and there is no sign that there will be a consolidation or rebound in the future. The $1745/$50 support area is a strong support level. If it falls below this level, it will open the door to more downtrends, and the target may be at $1,700 by then. On the upside, the bullish correction may encounter resistance at $1775. Now, the price range between $1775/$80 is a key obstacle. If the price of gold recovers to the above level, it may ease the bearish pressure. To eliminate the negative bias, gold needs to break through $1833, and the downward pressure remains unabated in the short term, even after being sold at $50.
Bank of China Guangdong Branch Wang Gang
Original title: The United States' August retail sales are super strong, and gold is now shocked
Source: Bank of China official website
US retail sales exceeded expectations in August, after falling 1.8% in July, it rose 0.7% in August. The market’s general forecast is a drop of 0.8%. The unexpected increase in US retail sales in August has partially alleviated concerns about a sharp slowdown in economic growth. The signs of a strong economic recovery have sparked speculation that policymakers may soon reduce stimulus measures. The strong U.S. retail sales data boosted the U.S. dollar and added justification for betting that the Federal Reserve may accelerate the reduction in debt purchases. U.S. Treasury yields and the U.S. dollar expanded their gains, reducing the demand for non-interest-bearing precious metals. Judging from the recent performance of gold, it seems that investors’ interest in gold investment seems to be incapable of fighting spirits. When the yields of US bonds fell, they did not perform, but when the yields rose, they accelerated and fell sharply. This is a very unhealthy phenomenon. Just like yesterday, strong retail sales have intensified concerns about accelerated underweights, exposing them to risks. Gold has suffered a considerable blow. As the U.S. dollar and U.S. Treasury yields rise, As well as the release of stronger data, we can see the gold bulls rushing out of the market. Now unless there are some geopolitical events or the Fed unexpectedly reveals strong dovish intentions, the downward trajectory of gold is unlikely to change before the Federal Open Market Committee (FOMC) meeting.
In the past two weeks, despite increasing calls for caution on the US stock market, the price of gold has not rebounded sharply. The sharp drop in gold led to a decline in technical indicators. The relative strength index is at the extreme level of oversold, but it is still pointing downward, and there is no sign that there will be a consolidation or rebound in the future. The $1745/$50 support area is a strong support level. If it falls below this level, it will open the door to more downtrends, and the target may be at $1,700 by then. On the upside, the bullish correction may encounter resistance at $1775. Now, the price range between $1775/$80 is a key obstacle. If the price of gold recovers to the above level, it may ease the bearish pressure. To eliminate the negative bias, gold needs to break through $1833, and the downward pressure remains unabated in the short term, even after being sold at $50.
Bank of China Guangdong Branch Wang Gang
Original title: The United States' August retail sales are super strong, and gold is now shocked
Source: Bank of China official website
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