Gold: Bearish below 1680

A brief analysis of the fundamentals:

On Thursday (September 15), after the unexpectedly higher CPI data, the latest US retail sales data for August also unexpectedly recorded 0.3%, which was better than the expected 0%. The US index remained above 109, and spot gold fluctuated and fell. , once fell below $1,660 during the session, hitting a new low since April 2020, and finally closed down 1.91%. The economic data is bombarded by turns, and the strength of the US index puts the gold price under tremendous pressure. It is almost a foregone conclusion to raise the interest rate by 75 basis points at the September meeting. If the bet of a 100 basis point interest rate hike is further strengthened, the gold price may fall further.

Spot Gold XAUUSD Daily Chart

A brief technical analysis:

From the daily chart, the price of gold closed down for three consecutive trading days. Yesterday, it broke the mid-term strong support line of $1,680 again. MACD showed continuous heavy volume below the zero axis, showing that the trend continued to decline. $1,680 became the current strong support. Stay bearish below this level, target 1645-1620 below

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