Gold: 1640 support is valid

A brief analysis of the fundamentals:

Under the "technical recession" on Thursday (September 29), Fed officials remained firm and hawkish, the Bank of England's bailout continued to bring about a recovery in market risk appetite, the US dollar continued to fall at a high level and US bond yields plummeted The combined effect of gold prices gave gold prices a chance to rebound. Spot gold fell first and then rose. The U.S. market once rose to a high of $1,664.78, and finally closed up 0.04%. Looking ahead, the prospect of interest rates and risk aversion are expected to continue to support the US index higher. If the US dollar continues to be strong, then the rebound in gold prices will be difficult to sustain.

Spot gold XAUUSD 4-hour chart

A brief technical analysis:

Looking at the 4-hour chart, after the gold price pulled back at 1640, it was supported and continued to rebound, rising above the bottom. MACD also began to increase volume slightly above the zero axis. That is, it showed that the market continued to rebound in demand, and remained bullish above 1640 during the day, with a target of 1670- 1690.

Long and short turning point: 1640.00

Resistance: 1670.00 1690.00

Support level: 1620.00 1600.00

Trading strategy: bullish above 1640.00, target 1670.00   1690.00  

Alternative strategy: bearish below 1640.00, target 1620.00 1600.00