Gold: Bearish below 1720

A brief analysis of the fundamentals:

On Wednesday (August 31), European and American officials put their hawks on the line again, and Fed Mester said that fighting inflation will be a long struggle. Mester also reiterated her preference for the Federal Reserve to raise the federal funds rate above 4% in early 2023, and Holzmann, the European Central Bank's governing board member, said that at the September meeting next week, the European Central Bank will raise rates by at least 50 percentage points. basis point. U.S. bond yields hit a new high, spot gold fluctuated downward, fell below the 1710 mark twice, and finally closed down 0.72%

Spot Gold XAUUSD 1 Hour Chart

A brief technical analysis:

In the 1-hour chart, the price of gold fell below the $1710 mark, and the trend continued to be bearish. MACD continued to increase volume below the zero axis, indicating that the downward trend continued. The current resistance has moved down from 1720 to 1710. The preferred strategy is to sell on rallies. Target 1700-1680.

Long and short turning point: 1720.00

Resistance: 1730.00 1745.00

Support level: 1700.00 1680.00

Trading strategy: bearish below 1720.00, target 1700.00   1680.00  

Alternative strategy: bullish above 1720.00, target 1745.00 1760.00