U.S. dollar and U.S. debt fell, gold rose sharply by $18 (with trading strategy)
Gold futures are hovering around US$1780. Powell said that the Fed will not raise interest rates too quickly; Asian trading of gold futures rises, and the bullish momentum will exceed 1800?

Spot gold prices rose 1.58 US dollars, or about 0.09%, to 1,780.34 US dollars per ounce.
Gold futures prices rose 2.95 US dollars, or about 0.17%, to 1,780.35 US dollars per ounce.
The US dollar index futures, which measures the trend of the US dollar against six major trade-weighted currencies, rose 0.14% to 91.882.
In Asian markets at midday, futures gold prices rose slightly. Prior to this, Fed Chairman Jerome Powell continued to appease the market at a hearing held in the House of Representatives on Tuesday. He said he would not rush to raise interest rates. However, the strengthening of the U.S. dollar suppressed the rise in gold prices.
Gold futures prices closed lower for the third day in the past four trading days. About half an hour after the gold futures closed lower, Bauer gave his testimony to the subcommittee on the new crown epidemic selected by the House of Representatives. This is his first speech since last Wednesday when he publicly stated that the Fed had begun talking about the final reduction in bond purchases. Powell also reiterated the Fed’s goal of achieving “widespread and universal” employment, and said that the Fed will not raise interest rates until the current round of recovery is complete.
The Fed’s policy meeting last week surprised the market. The meeting revealed that policymakers currently expect to raise interest rates twice before the end of 2023, which is earlier than previously expected.
On Monday, Ball issued a prepared testimony, stating that the Fed "will do everything possible to support the economy to obtain everything it needs to complete its recovery."
After the sharp drop last week, gold rebounded and rose on Monday, but the overall trend is still in a downward trend. The price of gold is still below the important psychological levels of 1900 and 1800 US dollars.
ActivTrades technical analyst Pierre Veyret wrote in a report on Tuesday, “After last week’s sell-off, the market is consolidating between US$1770 and US$1,800, because investors are more difficult to figure out the near-term prospects of gold.”
Will gold return to $1800?
As gold fell on Tuesday, the U.S. dollar also fell. The yield of public bonds is complicated, with the yield of 10-year bonds falling, but the yield of 30-year bonds rising.
Jeff Wright, Chief Investment Officer of Wolfpack Capital, stated that Ball’s prepared testimony “highlights inflation and reiterated that the concept of “inflation is temporary in nature” has not been unanimously agreed. Due to the uncertainty of the Fed’s future response time , Gold weakened."
The problem with gold is, "Inflation is temporary. This statement is not an objective measure and can be widely explained. The Fed's interest rate hike will be the most direct response to curbing inflation, but it is difficult to determine when the Fed will start the process of raising interest rates. The first is to reduce debt purchases, and then actually raise interest rates, which may be at the end of 2022 at the earliest."
Wright believes that although gold will not rebound quickly, it seems to find some stable support below $1,800. If Ball is dovish in answering questions, gold may rise above $1,800.
At present, the focus of investors is shifting to the monetary policy meeting of the Bank of England that ended on Thursday.
Trading strategy (Source: Trading Central)
Pivot: 1771.00
Our preference: long positions above 1771.00 with targets at 1790.00 & 1797.00 in extension.
Alternative scenario: below 1771.00 look for further downside with 1766.00 & 1760.00 as targets.
Comment: the RSI calls for a rebound.
Supports and resistances:
1810.00
1797.00
1790.00
1781.30 Last
1771.00
1766.00
1760.00
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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