Gold Trend Is Weak as Affected by Data

Peterson

Commodity

Summary:

Today's oscillation will start from $2015 to $2048, and it is better to buy low and sell high.

BUY XAUUSD

EXP

EXPIRED

2015.00

Entry Price

2048.00

2010.00

4340.19 +40.80 +0.95%

Pips

EXPIRED

2010.00

2031.48

Exit Price

2015.00

Entry Price

2048.00

Fundamentals

During Tuesday's (January 9th) Asian session, spot gold ascended slightly, and it is now trading at $2032.

Yesterday, gold slid in a unilateral downward trend under the impact of last week's data. There was no decent rebound throughout the day, and the daily high was in the opening near $2046.5. It once plunged to $2017.5, which may be caused by the short side as it was worried about the recent complex situation. Besides, data has been repeating in the past few days without much inertia. Although the short-term optimistic expectations were corrected, geopolitical disturbances still exist to support the gold price. In addition, another heavy data, the CPI data, will be announced on Thursday, which can also be expected to provide new guidance for the interest rate cut! Therefore, yesterday's market did not fall again, but stayed and rebounded in the support area ($2015 to $2020) we have emphasized. Before the data is published, the market will stay alert, and bulls and bears will not move smoothly. For aggressive investors, try to buy low and sell high around significant support and resistance.

We made decent profits during the last trading session. For recommendation, we demonstrated that investors should go long at $2020 and go short at $2050. Then, gold reached its highest level at $2046.5, when its lowest price touched $2017.5. As the highest level did not match, we did not go short in the Asian session. However, as we went long at $2020 in the early U.S. session, and set the take-profits target at $2035, a margin of $15 was made. Nevertheless, we failed to meet our second target at $2050, and the profit/loss ratio ended with 3:1. Trading works in this way, at first you would be annoyed to be restricted by the rules and regulations. Then, the more you go on, you will eventually be afraid of trading without restrictions. It also explains that you have been trapped several times, while a well-tested trading system and the implementation become essential for a stable trading situation, which may seem to be easy, but it is the most difficult stage.

Today's focus: U.S. trade account for November. Most importantly, the CPI data is to be released Thursday.

Technical Analysis

Gold depreciated unilaterally yesterday in the Asian session. After surging to $2046.5, gold declined with oscillations without any rebound, and once touched $2017.5 before getting support. Later on, gold rebounded to $2037 by 20 dollars. There wasn't enough news to support it, and gold moved according to technical analysis. After reaching support in the range of $2015 to $2020, gold rebounded but also stopped in the range of $2035 to $2040. Now, the pattern center is declining, but the retracement is sufficient. If no more bad news appears, gold will get stable, and we should focus on the CPI data this Thursday.

After two consecutive doji stars last Friday, gold failed to rebound but plummeted further, showing that gold tried to reach the bottom. However, according to the daily chart, gold is at the lower area of an oscillating-ascended channel, suggesting strong technical support in the near term. There will be short-term deviation, but it will not last longer unless a reversal emerges. Furthermore, we should consider the range from $2015 to $2020 below, with further attention to the support at $2000. About the situation above, we must take a look at the situation between the 5-day SMA ($2040) and the 10-day SMA ($2050). Today, our trading range should be from $2015 to $2048, where aggressive investors can buy low and sell high. Gold Trend Is Weak as Affected by Data _1

Gold Trend Is Weak as Affected by Data _1

Trading Recommendations

Trading direction: Long

Entry price: 2015

Entry price: 2048

Stop loss: 2010

Support: 2020.000/2010.000

Resistance: 2038.000/2050.000

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