Gold: Shockingly Bullish

A brief analysis of the fundamentals:

On Friday (September 12), risk assets continued to strengthen ahead of the CPI data. The US index plunged sharply, closing down for the fourth consecutive trading day. Spot gold rose and fell, and retreated after the US market rose to a daily high of 1735.03. Most of the previous gains, and fell below the $1,730 mark, and finally closed up 0.43%. The U.S. CPI data will be released today. As a bellwether for the Fed to raise interest rates, the level of inflation data is crucial and should be focused on during the day.

Spot gold XAUUSD 4-hour chart

A brief technical analysis:

From the 4-hour chart, the price of gold continued to rise in shock, with an obvious short-term upward trend. The MACD continued to increase volume above the zero axis, showing that the trend still has further strengthening momentum. Above the rising trend line, it continues to be bullish on dips. The upper target 1735-1750

Long and short turning point: 1718.00

Resistance: 1735.00 1750.00

Support: 1718.00 1706.00

Trading Strategy: Bullish above 1718.00, target 1735.00 1750.00  

Alternative strategy: bearish below 1718.00, target 1706.00 1690.00