24K99 News Early European trading on Tuesday (September 17). Gold prices fell by more than 12 US dollars in the short term, and the fall hit 2,571 US dollars. Analysts warn that the price of goldRSIIt is close to being overbought and is likely to face a deeper correction. Traders await US retail sales data and the Federal Reserve's key interest rate policy decisions. Despite short-term gains, gold prices have remained stable at historic highs.

(Source: FX168)

According to market indicators, the price of gold soared to a record high (ATH) of $2,589 on Monday as the market bets that the Federal Reserve will double interest rates by 0.50% at Wednesday's meeting.

The expectation that the Fed will cut interest rates is good for gold because it reduces gold holdingsOpportunity costs, thereby making it more attractive to investors.

US retail sales data released later on Tuesday may affect the Federal Reserve's interest rate decision. If the data is higher than the expected 0.2%, it indicates that the US economy is performing better than expected, and the Federal Reserve may not need to cut interest rates sharply to stimulate growth and employment. This situation is bad for gold.

Conversely, if retail sales fall short of expectations, this will further increase speculation that interest rates will be cut by 50 basis points on Wednesday and will have a positive impact on gold, which may rise to a new high.

Several top analysts say the long-term outlook for gold remains positive, and they believe there is evidence that commodities, including gold, are entering a new bullish supercycle.

Michaël van de Poppe, founder of MN Consultancy, tweeted: “The last time we saw this valuation of commodities was in 1971 and 2000. Commodities and cryptocurrencies are grossly undervalued, and commodities are likely to enter a 10-year bull market.”

Van de Poppe isn't the only commentator who says commodities are entering a long-term bull market. According to a recent report published on “Flow Show” by Bank of America investment strategist Jared Woodard, “the long-term commodity boom in the 2020s has only just begun because debt, deficits, demographic structure, anti-globalization, artificial intelligence (AI), and net zero policies all lead to inflation.”

The price of gold peaked at around $2,580 and stabilized. The short, medium, and long term trends are all bullish. Whereas “the trend is your friend” isTechnical analysisIn principle, gold is more likely to rise. Therefore, if there is a pullback, it is likely that gold will be brief before resuming a broader upward trend.

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FXStreet analyst Joaquin Monfort said, according toRelative strength index(RSI), gold is not yet overbought, but it is close to being overbought. If gold enters this area at the close, traders are advised not to increase long positions, although the rally is likely to continue.

If gold enters an overbought state and then exits back to a neutral state, it indicates that gold will undergo a deeper adjustment.

If there are corrections, solidSupport levelIt is located at $2,550, $2,544 (0.382 Fibonacci retracement level that rebounded in September), and $2,530 (previous range-high). #黄金技术分析 #

(Source: FXStreet)