[Bitop Market Review] Gold Strategy Analysis

2024年02月06日 11:05:00

Strong US Data Continues to Impact Market, Gold Under Pressure!


During the Asian trading session on Tuesday, February 6, the current spot gold price is trading around $2026 per ounce. The strong US employment report from last Friday continues to influence the market, driving up US bond yields and the US dollar index, exerting pressure on gold prices. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated yesterday that the resilience of the US economy means investors will have to wait a while longer to know whether the Federal Reserve will cut interest rates.


Additionally, in the "60 Minutes" program aired on CBS News last Sunday evening, Federal Reserve Chairman Jerome Powell stated that due to the strength of the economy, Fed officials have time to build confidence in the sustained decline in inflation, allowing the Fed to "carefully" decide when to cut interest rates. Powell's remarks were more cautious than before, as he dismissed the idea of cutting rates in the spring. This suggests that the Fed may not consider cutting rates until more data confirms that inflation has indeed fallen below target levels.


From a daily perspective, if the gold price falls below the volatility low from last Friday (around $2028-$2027 per ounce), it may lead to a decline to the $2012-$2010 per ounce area, with further targets at the psychological level of $2000 per ounce. If the gold price falls below the $2000 per ounce level, bearish sentiment may intensify, with the price potentially falling to the 100-day moving average support around $1983-$1982 per ounce and challenging the important 200-day moving average (near the $1965 per ounce area).


On the upside, if the gold price breaks above the high point near $2042 per ounce, it may encounter strong resistance in the $2054-$2055 per ounce area, with further resistance at the $2065 per ounce area or last week's oscillation high. Overall, for short-term gold trading strategies, it is advisable to focus on resistance around $2035-$2040 and support around $2015-$2010.


Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.