Technical Analysis

Gold price rallied from a 3-month low last week. The US core inflation rate came in higher than expected, causing the gold price to break below the critical support level of 2000 and drop close to 1980. However, the release of the disappointing US retail sales data pushed the gold price back above 2000 (1) on Thu., ending the week near 2013. The main event on the economic calendar this week will be the release of the US Fed. Meeting minutes on Wed. Not expecting any surprising content, the dominant factors will remain to be “observing the data,” “waiting for more evidence,” and “the timing of rate cuts being slower than market expectations,” which are mostly bearish for gold, pulling the gold price down in S-T.

1-hour chart – An S-T upward channel(3) has formed in the past 24 hours. At the Asian session today, the gold price has broken through the previously mentioned downward resistance(2) and resistance zone (2.1). There are signs of accelerating buying pressure, and the price has already moved above the channel(3). The S-T target can be set at last Tue’s high near 2028(4), where the next upside target is at the resistance zone (5). With the US holiday on Monday, the market volume may be reduced. Tentatively, the trading range for this week can be set between 2000-40.

Daily Chart – Last week’s downward channel (7) is still valid, and some S-T resistance from the 20-day MA(6) is expected. The overall structure has transformed from a sideways consolidation (8) to a downward correction (7) after the release of US inflation data last week.

S-T ressitance 3

2030

S-T ressitance 2

2023

S-T ressitance 1

2020

Market price

2018

S-T support 1

2015

S-T support 2

2010

S-T support 3

2002

P. To

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.  

Keep an eye on the gold price for a downward adjustment after the US CPI this week.

The gold market was relatively calm last week; the trading volume of COMEX gold futures noticeably declined, dropping from an average daily volume of over 200,000 contracts in Jan. to only 140,000 since the beginning of the week. Adding that no significant economic data was being released, the price mainly bounced within the range of 2020-2040(1). As expected, we hope everyone took advantage of the situation✊. The trend hasn’t changed much after a week of sideways movement. The key focus this week, without a doubt, is the US CPI data on Tuesday. I expect the data to push the gold price higher towards the resistance zone around 2035-2040(3). Whether it can jump across 2050 will very much depend on whether the data release brings any surprises. On the other hand, according to CME’s FedWatch, the probability of a rate cut in March has decreased to around 60%, so the chances of gold reaching new highs in the S-T are slim. The S-T price will likely continue oscillating within the sideway range… but still be mindful of a potential deeper consolidating cycle.

1-hour chart – We can continue utilizing the 2020-40(1) range for S-T. Keep an eye on the downward resistance line formed last week(2). If the price breaks above this resistance line within the next 48 hours, it will trigger a round of buying orders, and the price may reach once again the 2040 resistance zone (3). The key support level below is at 2015.

Daily chart – Although the upward trendline (4) is still valid, the probability of a rate cut in May is declining. Unless US inflation significantly slows down in the next two weeks, it will be difficult for the gold price to maintain its current upward movement above the trendline(4). If the gold price falls below the support line (4) in this week, it will trigger a round of selling, and the price is likely to test the bottom of the 2002-2065 range (5) again.

S-T ressitance 3

2040

S-T ressitance 2

2035

S-T ressitance 1

2030

Market price

2024

S-T support 1

2020

S-T support 2

2015

S-T support 3

2008-10

P. To

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.  

場外式黃金/白銀交易的風險:
場外式黃金/白銀交易由 Max Online 提供。場外式黃金/白銀交易涉及高度風險，未必適合所有投資者。高度的槓桿可為閣下帶來負面或正面的影響。場外式黃金/白銀並非受證券及期貨事務監察委員會（「證監會」）監管，因此買賣場外式黃金/白銀將不會受到證監會所頒布的規則或規例所約束，包括（但不限於）客戶款項規則。閣下在決定買賣場外式黃金/白銀之前應審慎考慮自己的投資目標、交易經驗以及風險接受程度。可能出現的情況包括蒙受部分或全部初始投資額的損失，或在極端情況下（例如相關市場跳空）產生更多的損失。因此，閣下不應將無法承受損失的資金用於投資。投資應知悉買賣場外式黃金/白銀有關的一切風險，如有需要，請向獨立財務顧問尋求意見。

The gold price was under the influence of two major events last week, the FOMC meeting and the non-farm payrolls report, which resulted in significant daily fluctuations; however, the closing price for the entire week resumed its position below 2040, without any clear structural breakthrough. The post-FOMC statement kept the probability of a rate cut in March to a mere 15% (according to CME’s FedWatch Tools). Adding the non-farm payroll data on Fri., once again exceeded the market’s expectation for the second consecutive month and pulled the gold price back below the 2040 range before the week ended.

Although the range trading strategy we’ve been suggesting in recent weeks aligned perfectly with the overall trend in the gold market, and the resistance and support levels performed as expected, last week’s market involved too many uncertain factors. I would say the trading difficulty reached the “Black Diamond” level, with rapid and wide swings in the price movements.

1-Hour Chart – The difficulty of trading should ease down this week as no major economic data is being released, and with the approaching of the CNY holiday. The gold market is expected to resume the range-bound pattern & vibe we saw two weeks ago. After the gold price drops below 2040, we can continue to take advantage of the 2020-40(2)range. The S-T resistance zone remains in 2035-2040(1), nothing new ????????????. However, I believe that in the next 48 hours, we should see the price reaching the bottom of the S-T near 2020.

Daily Chart – The range structure we’ve been highlighting in the past few weeks, between 2002-65(3), is still valid. At the moment, the price is trapped within a consolidating triangle pattern(5). For the price to return to the bottom of the range, it needs to break out of the triangle formation. In S-T, keep an eye on the 20-day moving average as a support level.

S-T ressitance 3

2048

S-T ressitance 2

2040

S-T ressitance 1

2030

Market price

2034

S-T support 1

2030

S-T support 2

2027

S-T support 3

2020

P. To

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.  

場外式黃金/白銀交易的風險:
場外式黃金/白銀交易由 Max Online 提供。場外式黃金/白銀交易涉及高度風險，未必適合所有投資者。高度的槓桿可為閣下帶來負面或正面的影響。場外式黃金/白銀並非受證券及期貨事務監察委員會（「證監會」）監管，因此買賣場外式黃金/白銀將不會受到證監會所頒布的規則或規例所約束，包括（但不限於）客戶款項規則。閣下在決定買賣場外式黃金/白銀之前應審慎考慮自己的投資目標、交易經驗以及風險接受程度。可能出現的情況包括蒙受部分或全部初始投資額的損失，或在極端情況下（例如相關市場跳空）產生更多的損失。因此，閣下不應將無法承受損失的資金用於投資。投資應知悉買賣場外式黃金/白銀有關的一切風險，如有需要，請向獨立財務顧問尋求意見。

The gold price was moving within a narrow range last week. The price was bounded by 2020-40 until Wednesday’s US better-than-expected GDP data; it cleared the 2020(2) support and dropped to as low as 2010.

There are two major economic events to pay attention to this week. First, we have the Fed. Meeting on Wednesday. There is a 95% chance that the interest rates will remain unchanged (according to CME’s FedWatch)in this week’s meeting. And the statement they release after the meeting…I’m expecting the Fed. is unlikely to make any sudden moves in the next few months, considering the Fed’s habits of slow acting at the beginning of this rate hike cycle and most of the economic figures haven’t shown any dramatic improvement recently. Unless Powell makes some unexpected comments, the chances of a rate cut in March… or even in May, might stay around 50-60% with no major changes afterward. On the other hand, the US employment data at the end of this week is also expected to be in line with expectations, with possibly downward pressure on the price of gold. The price of gold hasn’t shown any signs of a breakout, so it’s still a good idea to continue trading within the established range.

1-Hour Chart – The price of gold dropped below the 2020(2) and rebounded from the lows near 2010. It has failed to reach the previous low point of 2001(5), indicating that buying positions below 2010 have become stronger. Today, in the Asian trading session, the spot gold price has already returned above the 2020 mark. Over the past 48 hours, an S-T upward channel(4) has formed, suggesting the possibility of revisiting the resistance zone of 2035-40(1), likely before the Fed. Meeting.

Daily Chart – Market uncertainty is expected to increase mid to late this week, so it’s crucial to be cautious about potential breakouts in technical patterns. The resistance zone around 2030-40(9) is still cursing the market. In the next two trading days, watch the 20-day MA(8). The upward support line(6) is still holding, and if a breakout occurs, the bottom of the range near 2001 could become the next support level.

S-T ressitance 3

2040

S-T ressitance 2

2035

S-T ressitance 1

2030

Market price

2025

S-T support 1

2020-2

S-T support 2

2015

S-T support 3

2010

P. To

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.  

場外式黃金/白銀交易的風險:
場外式黃金/白銀交易由 Max Online 提供。場外式黃金/白銀交易涉及高度風險，未必適合所有投資者。高度的槓桿可為閣下帶來負面或正面的影響。場外式黃金/白銀並非受證券及期貨事務監察委員會（「證監會」）監管，因此買賣場外式黃金/白銀將不會受到證監會所頒布的規則或規例所約束，包括（但不限於）客戶款項規則。閣下在決定買賣場外式黃金/白銀之前應審慎考慮自己的投資目標、交易經驗以及風險接受程度。可能出現的情況包括蒙受部分或全部初始投資額的損失，或在極端情況下（例如相關市場跳空）產生更多的損失。因此，閣下不應將無法承受損失的資金用於投資。投資應知悉買賣場外式黃金/白銀有關的一切風險，如有需要，請向獨立財務顧問尋求意見。

Gold tested the support at 2020 twice last week and officially bottomed out after the release of US inflation data. It then rebounded and reached a high of 2062 before closing the week at 2048. However, it failed to hold above the 2050 level.

1-hour chart – Gold broke through the downward resistance line(1), originating from the 2088 peak during the US trading session last Fri, marking the end of the S-T downward cycle on the hourly chart. The price again surpassed the 2050 resistance late last week, showing a sign of the selling resistance gradually weakening at that level. The trading range is expected to broaden, expanding from the previous range of 2020-50 to 2015-2065(2).

Daily chart – After gold broke away from the upward support(3), it touched the 50-day MA last week (6), forming a sideways structure in the range of 2015-2065(4). Flow with the 2015-65(4) range for now, with S-T support at 2048 (20-day MA) and a stop-loss above the resistance zone of 2070-2079.

S-T ressitance 3

2065

S-T ressitance 2

2060

S-T ressitance 1

2056

Market price

2055

S-T support 1

2048-50

S-T support 2

2043

S-T support 3

2040

P. To

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.  

場外式黃金/白銀交易的風險:
場外式黃金/白銀交易由 Max Online 提供。場外式黃金/白銀交易涉及高度風險，未必適合所有投資者。高度的槓桿可為閣下帶來負面或正面的影響。場外式黃金/白銀並非受證券及期貨事務監察委員會（「證監會」）監管，因此買賣場外式黃金/白銀將不會受到證監會所頒布的規則或規例所約束，包括（但不限於）客戶款項規則。閣下在決定買賣場外式黃金/白銀之前應審慎考慮自己的投資目標、交易經驗以及風險接受程度。可能出現的情況包括蒙受部分或全部初始投資額的損失，或在極端情況下（例如相關市場跳空）產生更多的損失。因此，閣下不應將無法承受損失的資金用於投資。投資應知悉買賣場外式黃金/白銀有關的一切風險，如有需要，請向獨立財務顧問尋求意見。