The most important day of the week is approaching – can gold’s rebound of $2,400 become the new normal?
On Wednesday (July 10), the gold market once again became the focus, with gold prices rising strongly in the short term. There are multiple factors behind this phenomenon, and the future trend of gold prices will be discussed. From a technical perspective, gold prices have shown signs of rebounding after a period of consolidation, showing the potential to challenge $2,400 per ounce. The latest technical analysis of gold: Looking at the daily chart, gold has been rising steadily since bottoming near the key support level of $2,277. Buyers are now focused on the upper end of the range at $2,430. If the price reaches that level, one can expect bears to step in and price prepares to fall back to the 2277 support. Golden 4 hour chart Looking at the 4-hour chart, the price retreated from the 2387 resistance level and rebounded on the trend line. Buyers have gathered around the trend line, with clear risk below it, The goal is to break through the resistance level. The bears may once again step in near the resistance, targeting a break above the trendline and increase bearish bets towards support at 2277. Golden 1 hour chart Looking at the 1-hour chart, the price broke through an important range today. More buyers can be expected to step in near these levels in preparation for a break above the 2387 resistance. On the other hand, sellers would like to see the price break below the trendline and 2350 levels to shift the bias to be more bearish and prepare for a pullback towards the 2277 support. From a technical perspective, gold prices are showing signs of rebounding after a period of consolidation. After holding the key support level of $2,350 per ounce, gold prices It shows the potential to challenge US$2,400 per ounce. The Relative Strength Index (RSI) on the daily chart is showing bullish signals, further supporting this view. On the downside, gold prices may face short-term support at the psychological level of $2,350/oz. Once it falls below this level, gold prices will challenge $2,340 per ounce. A continued fall below this area may trigger a new downward trend in gold prices and fall towards the $2,300/ounce mark. The author believes: The gold catalyst is coming tomorrow, because the market will usher in the US CPI and US initial jobless claims data. On Friday, markets will end the week with U.S. PPI and the University of Michigan Consumer Sentiment Survey. While gold prices may be affected by strong U.S. data in the short term, weak data could create greater upside opportunities for the gold market in the longer term. Author: Zhou Tong (analyst) 10-07-2024 At 20:40 Hong Kong time, spot gold was trading at US$2,380.66 per ounce. #The above are only the author’s personal opinions and have nothing to do with the company’s position. Warm reminder from Hongfeng Gold: The strategic suggestions are for reference only. There are risks in entering the market, so investment needs to be cautious.