Gold prices are still under downward pressure before the Fed’s decision, and US$1750 may be a key support level

Edward Moya, senior market analyst at OANDA, pointed out that before the Federal Reserve announced its decision this week, there is a risk of selling gold, adding that precious metals may experience increased volatility and fluctuations in the trading environment.

For several months, gold has been traded on a large scale-between US$1,680 and US$1,840 per ounce. He added that at present, $1,750 is a key support level that must be held.

Edward Moya pointed out that you may see gold continue to consolidate until the day of contraction on Wednesday. The price of gold may fall after the Fed's decision. That's when you buy gold. This week we may see the price of gold go down sharply for the last time. If there is a major decline to $1,720, it is time for you to consider expanding gold. If you buy on dips, it is not difficult to regain $1,800 per ounce," Moya explained.

Sean Lusk, co-director of Walsh Trading, said that if gold fails to hold $1,784 and then falls below $1,745, the situation for precious metals may get worse. We might see $1,680

In addition to the major announcement by the Federal Reserve on Wednesday, the Bank of England is scheduled to announce its interest rate decision on Thursday.

The analysis pointed out that the Bank of England is preparing to raise interest rates for the first time since the epidemic, and the market has fully digested the Bank of England's expectation of 15 basis points to raise interest rates for the first time next week. Economists are not sure, and the consensus is relatively split. But the message from Governor Andrew Bailey and his colleagues strongly suggests that the central bank does not want to hang interest rates by its side.

In addition, another important data this week is the US employment data for October. The market is generally expected to increase 413,000 jobs and the unemployment rate will drop to 4.7%. Other macroeconomic data to watch include Monday’s US ISM manufacturing purchasing managers’ index, Wednesday’s ADP non-agricultural employment and ISM non-manufacturing purchasing managers’ index, and Thursday’s initial jobless claims.



Technically, in the 4-hour chart of the gold price, the current price has fallen below the moving average, and each cycle moving average has completely diverged downwards, indicating that the price of gold is under high technical pressure. In addition, the value of MACD's DIF column has turned its head down, and the price drop is still strong, indicating that the price of gold still has the momentum to hit a new low.

In addition, the $1750 below has become a relatively strong support position for this round of gold price decline, because this position is a relatively low position in a dense trading range. When the price touches near this position, there will be more short profit orders out of the game, which limits The price of gold fell.

GMT+8 16:43, the spot gold price was reported at 1,783.32 US dollars per ounce.