Gold: Focus on strong resistance at 1648

A brief analysis of the fundamentals:

On Monday (September 26), a number of Fed officials adhered to a hawkish stance. Some research institutions believed that the probability of a global economic recession was 98%, triggering a "severe" recession signal. The market sentiment was tense, and the US index rose for a time. To a high of 114.6, the yield on the 10-year U.S. Treasury bond rose sharply, and spot gold expanded its decline in the U.S. market and finally closed down 1.3%. As the Fed continues to aggressively raise interest rates, the bull market for the dollar is far from over, and the outlook for gold prices remains bleak.

Spot gold XAUUSD 4-hour chart

A brief technical analysis:

From the 1-hour chart, the price of gold once again broke through the previous low of $1,626 to create a new low, and the bears continued to decline. The MACD volume began to shorten below the zero axis, indicating that there was a divergence in the decline. There may be a rebound and repair demand in the day, and the top is strong. Resistance is near $1,648.

Long and short turning point: 1648.00

Resistance: 1635.00 1648.00

Support level: 1620.00 1610.00

Trading strategy: bearish below 1648.00, target 1630.00 1620.00

Alternative strategy: bullish above 1648.00, target 1670.00 1685.00