[Bitop Market Review] Gold Strategy Analysis

2024年02月07日 09:39:46

Strong US Economic Data Continues to Challenge Gold in the Short Term!


During the Asian trading session on Wednesday, February 7th, the price of gold is currently trading around $2033 per ounce, with a slight retreat in US Treasury yields and the US dollar on Tuesday, providing some relief to the gold market. Loretta Mester, President of the Federal Reserve Bank of Cleveland, stated on Tuesday that if the US economy performs as she expects, she may begin to consider lowering interest rates, but she is not prepared to predict the timing of easing policies amid uncertainty about inflation. This statement echoes Powell's stance, who mentioned that the Fed can "cautiously" decide when to cut interest rates.


The strong performance of US economic data at the beginning of the new year has led the market to start considering whether the US economy will re-accelerate this year, rather than just focusing on the possibility of a soft landing or recession. If the economy continues to grow strongly and inflation does not quickly fall back, the timing of rate hikes and maintaining high interest rates may be extended, which would benefit the US dollar and put pressure on gold. Therefore, the short-term challenges for gold still exist.


Looking at the current trend, if the price of gold falls below the swing low of last Friday (around $2028-$2027 per ounce), it may lead to further declines to the $2012-$2010 per ounce area, with the subsequent target being the psychological level of $2000 per ounce. Once gold decisively breaks below the $2000 per ounce level, it may continue to decline.


Overall, the daily trend of gold prices is mainly in a range-bound oscillation pattern recently. Taking everything into consideration, for intraday operations on gold, it is advisable to focus on short-term resistance around $2040-$2045 per ounce on the upside and short-term support around $2020-$2015 per ounce on the downside.


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.