Gold trading strategy on September 21: Gold price is technically bearish, and may weaken again before the decision

On Tuesday (September 21), spot gold fell slightly. The short-term gold price is still weak. The technical side shows that there is room for further downside. It is recommended that conservatives wait and see, and radicals short rallies.


Daily level: Gold prices bottomed out on Monday and rebounded. The bulls temporarily ushered in a respite, mainly supported by risk aversion.

From a technical point of view, the price of gold is still below the average of each cycle, MACD has formed a dead cross, and RSI has broken away from the oversold area, indicating that the price of gold has room for further downside.

It is expected that before the Federal Reserve announces the interest rate decision on Wednesday, gold bulls are expected to remain cautious, and the upside is expected to be limited. It is recommended that radicals can still short rallies, and conservatives wait and see.

The initial resistance above is concerned with the 10-day moving average of 1779.81, and further concerned about the 50-day moving average of 1794.41 and the 200-day moving average of 1806.92.

The initial support below focuses on the low of 1750.79 on June 29, and further attention on the low of 1742.38 on September 20. If it falls below this level, the price of gold will further open the door to the low of 1724.17 on August 11.

(Spot gold daily chart)

Resistance levels: 1779.81; 1794.41; 1806.92
Support levels: 1750.79; 1742.38; 1724.17

Short-term operating suggestions: activists short rallies, conservatives wait and see.

GMT+8 13:57, spot gold was quoted at US$1,762.64 per ounce.