Gold: 1642 effective support

Basic analysis:

On Monday (October 24), the latest PMI data of major developed economies, such as the euro area, the United Kingdom and the United States, showed an overall decline, exacerbating recession concerns. At the same time, U.S. Treasury Secretary Yellen said that the risk of economic recession cannot be ruled out. The United States may face substantial impact of financial stability risks. The yield of U.S. bonds rose again, the yield of two-year U.S. bonds broke 4.5% again, and the yield of 10-year U.S. bonds broke 4.29% in the session, Spot gold rose and fell again, closing 0.59% lower throughout the day.

Spot gold XAUUSD 4-hour chart

Technical analysis:

According to the 4-hour chart, the gold price rebounded 1670 and then fell back again. It fell to near 1642 and temporarily leveled off. At present, the support has been confirmed again. It is mainly bullish on 1642 in the day, with the upper target of 1670-1680.

Resistance level: 1670.00 1680.00

Support position: 1642.00 1622.00

Trading strategy: bullish above 1642.00, target 1670.00 1680.00

Alternative strategy: bearish under 1642.00, target 1622.00 1600.00