Gold: Support returns to 1730

A brief analysis of the fundamentals:

On Monday (August 29), after Powell released a strong hawkish signal, the market's expectations for interest rate hikes fermented, the US index and US bond yields soared, spot gold once fell below the 1720 mark, and then the US index hit a 20-year high. There was a favorable realization situation, and the price rose and fell below the 109 mark. The price of gold recovered most of the lost ground in the day, and finally closed down slightly by 0.03%. The market lacked economic event guidance on Tuesday, and it is necessary to pay close attention to changes in risk sentiment and prepare for Friday's non-farm payroll report. A good job market will support the Fed's hawkish expectations and put the dollar in a favorable position.

Spot gold XAUUSD 1 hour chart

A brief technical analysis:

Looking at the 1-hour chart, the price of gold bottomed out and returned to above $1730. MACD began to shrink below the zero axis, showing that the strong shorts in the market have weakened. Continue to see a rebound above 1730 within days, and target 1745- 1760, bearish below 1730, target 1720-1700.

Long and short turning point: 1730.00

Resistance: 1745.00 1760.00

Support level: 1720.00 1700.00

Trading strategy: bullish above 1730.00, target 1745.00 1760.00  

Alternative strategy: bearish below 1730.00, target 1720.00 1700.00