#Gold Technical Analysis# 24K99 News On Monday (September 9th), spot gold continued to be under pressure after a sharp drop on Friday, and the price is currently around $2496/ounce. Nicholas Kitonyi, a well-known financial website FXDailyReport analyst, wrote an article analyzing the future trend of gold.
Kitonyi said that on Friday, after the release of the latest data in the United States, the price of gold fell from a high of about $2529/ounce to about $2495/ounce. In the 60-minute chart, the gold price has also completed a downward breakthrough from the downward channel. The price of gold has fallen below the 100-hour moving average.
Spot gold closed sharply lower on Friday, down $19.33, or 0.77%, at $2497.25/ounce.
Analysts pointed out that the reason for the sharp drop in gold prices on Friday was the mixed results of the non-farm payroll data, which raised doubts in the market about the scale of interest rate cuts by the Federal Reserve this month.
The non-farm payroll report released by the United States on Friday is a mixed bag. The number of new non-farm jobs in August was 0.142 million, far below the economists' expectations of 0.165 million, and the previous value was revised sharply from 0.114 million to 0.089 million. However, the US unemployment rate in August dropped from 4.3% to 4.2%, the first decline in five months.
Aakash Doshi, head of commodities research at Citigroup, pointed out that such non-farm reports have led traders to debate whether the Federal Reserve will cut interest rates by 50 basis points or 25 basis points this month, and precious metals are reacting to this.
Nick Timiraos, a reporter for The Wall Street Journal, known as the 'Fed megaphone', said that the non-farm payroll report may provide a clear signal about the magnitude of the Fed's first interest rate cut, whether it is 25 or 50 basis points. Market pricing will immediately rise to 90%. But this non-farm payroll report did not provide a good answer to this question, and the market is currently pricing the interest rate cut at 25 or 50 basis points as 'half open.'
Two pictures of the technical prospects of gold
As for the short-term trend, Kitonyi stated that from a technical perspective, according to the 60-minute chart of gold, the price of gold has completed a downward breakthrough from the upward channel. The 14-hour relative strength index (RSI) has also declined and is close to oversold condition.
Therefore, the gold bears will seek the continuation of the current downward trend in gold prices, and the price may fall to $2480 per ounce, or even lower to $2463 per ounce.
On the other hand, the gold bulls will seek to take profit when the price rebounds to around $2512 per ounce, or even higher to $2529 per ounce.
(Spot gold 60-minute chart source: FXDailyReport)
Kitonyi pointed out that on the daily chart, gold is still trading within an upward channel. The 14-day RSI also supports a long-term bullish outlook as it is close to overbought condition.
Therefore, the gold bulls will seek the price to rise to $2549 per ounce in the long term, or even higher to $2600 per ounce.
On the other hand, the bears will seek to take profit when the price falls back to around $2434 per ounce, or even higher to $2382 per ounce.
(Spot gold daily chart source: FXDailyReport)
At 08:25 Beijing time, spot gold was quoted at $2496.12 per ounce.