International gold price bears a long way to go

International gold prices continued to decline on Monday, and the market will welcome major central banks, especially the Federal Reserve, to raise interest rates sharply this week to curb high inflation. But further rate hikes by the Fed are unlikely. In addition, hawkish comments from European Central Bank (ECB) policymakers may also limit gold's losses.

From a technical point of view, the current downward channel of the daily chart of the international gold price is intact, and it is still in the process of running from the upper track to the lower track; the moving average system shows a perfect downward trend; the MACD is running below the 0 axis and the volume is in the process of heavy volume. ; RSI is temporarily in the process of running towards the oversold area.

In terms of comprehensive indicators, the indicators of the gold price are in the process of bearish force, and there is still room for the downside.

Institutional view: Matt Simpson, senior market analyst at City Index, said: "Ahead of the FOMC meeting, we will see gold prices remain sideways and $1,680 may be a key near-term resistance. If the Fed raises rates aggressively, gold prices may fall to 1,600. to the $1,650 range.”

Strategy recommendation: Rolling short on rallies, the target below is 1600-1620;

Time window: Exit before the Fed rate decision

Stop Loss: 1695