Note gold trading strategy on September 20: long and short wait and see waiting for Fed decision, downside risks remain for gold prices
During the Asia-Europe session on Tuesday (September 20), spot gold was slightly volatile and currently trading around $1,671.55 an ounce. Investors remained cautious ahead of the Fed’s policy meeting this week, when the Fed could raise interest rates to curb high inflation. Overall, the market is expected to raise interest rates by at least 75 basis points, with a 20% probability of raising interest rates by 100 basis points, which keeps gold prices under pressure. The strong resistance at the 1680 mark also limits the rebound of the gold price. The US dollar index is still at a relatively high level. The 10-year US Treasury bond yield is near a more than 10-year high set on Monday The SPDR position, the world’s largest gold ETF, hit a new record, two-and-a-half-year low, before breaking the 1680 mark , the price of gold is still at risk of falling.
In this trading day, we will cover US real estate market data, Canadian CPI data, European Central Bank President Lagarde’s speech, and cover news related to the geopolitical situation.
Level 4 hours:After the shock and the fall, he bounced back and adapted; at the moment, the gold price is restrained by the strong resistance near the middle rail of the Bollinger Band and the 1680 mark. It is necessary to be wary of the risk of a return to the decline ■ Pay attention to the support near the 1660 mark. If this support is lost, the gold price is expected to test Bollinger further. The lower line is supported near 1648.32, and further strong support points to the position near the 1640 mark; in the short term, there is also some support near 1668, and the low point in the late New York overnight session was close to this position.
Due to the KDJ golden fork and the MACD golden fork, if the gold price can break through the resistance near the 1680 mark, it will increase the short-term bullish signal, and further resistance will be close to the 23.6% level of the 1807-. 1654 decline at 1690.62, followed by the 1700 integer mark and 38.2% Retracement near resistance at 1713.10.
Short term action tips:wait and see. Radicals cautious short-term rallies.