Gold: 1680 is a watershed for long and short

A brief analysis of the fundamentals:

On Monday (September 19), the "New Federal Reserve News Agency" said that the Federal Reserve will raise interest rates by 75 basis points. As the Federal Reserve meeting is approaching, interest rate hike expectations have been continuously strengthened. Gold once fell about $20 in intraday trading and recovered most of its lost ground. It closed up 0.05%. Judging from the current market sentiment, investors are close to fully pricing in the Fed’s expectation of a 75 basis point rate hike. If the rate hike is no longer intensified by 100 basis points, the “buy news, sell facts” market will be more likely to occur.

Spot Gold XAUUSD Hourly Chart

A brief technical analysis:

Looking at the hourly chart, the price of gold fell back around 1660 after rebounding from 1680 and was currently forming a prototype of a double bottom structure. At the same time, MACD began to increase slightly above the zero axis, showing that the current trend has upward momentum, but it is necessary to focus on the strong resistance of 1680. It remains bearish below the level, and it is bullish above $1,680.

Long and short turning point: 1680.00

Resistance: 1680.00 1700.00

Support level: 1645.00 1620.00

Trading strategy: Bearish below 1680.00, target 1645.00 1620.00

Alternative strategy: bullish above 1680.00, target 1700.00 1720.00