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Is the daily RSI overbought still bullish? Gold opens low and goes high and hides mystery, the American PPI guides the way tonight
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange]: Daily RSI overbought is still bullish? Gold opens low and goes high and hides mystery, American PPI will guide the way tonight." Hope it will be helpful to you! The original content is as follows:
On Wednesday (September 10), spot gold opened low and closed high. After the gold price broke out of the high and fell on Tuesday, it left a little panic, and maintained a bullish tone, near the historical high touched yesterday. In addition, from a fundamental perspective, the path of gold's minimum resistance is still on the rise, but the bulls may tend to wait for the release of US inflation data before taking action. The U.S. Producer Price Index (PPI) will be released later on Wednesday in North America, followed by the U.S. Consumer Price Index (CPI) on Thursday — two key data that will have a decisive impact on the short-term trend of the U.S. dollar and inject new volatility momentum into gold.
At the same time, the weak performance of US non-farm employment data last Friday further strengthened market expectations for the Federal Reserve to adopt a more radical easing policy, which not only limited the rebound space of the US dollar overnight, but also promoted the recovery of demand for interest-free gold. In addition, ongoing trade uncertainty, rising geopolitical tensions, and political turmoil in France and Japan form additional factors that underpin the safe-haven precious metal. This in turn confirms the positive prospects of gold in the short term, and also indicates that any correctional pullback may constitute a buying opportunity.
The following is a summary of recent market trends
Gold bulls are waiting for US inflation data to release new momentum
The unexpected weakening of the US employment data released last Friday further confirms the cooling trend of the labor market. According to this, the market expects the Federal Reserve to implement three interest rate cuts before the end of the year. In addition, CMEGroup's Fed rate observation tool shows that there is a small probability of implementing 5 at the Federal Open Market www.xmhouses.committee (FOMC) policy meeting next week.Possibility of a significant rate cut of 0 basis points.
Marriages and municipalities in various countries boost risk aversion
The Financial Times reported on Tuesday that former U.S. President Donald Trump has urged the EU to impose 100% tariffs on goods such as India. The report further pointed out that the Trump administration is ready to take "mirror reciprocity" measures against any tariffs imposed by the EU on Indian imports.
A federal judge temporarily banned Trump from removing Fed Director Lisa Cook on Tuesday. This ruling alleviates market concerns about the damage to the Fed's independence, and www.xmhouses.combined with the position adjustment operation before the release of key U.S. inflation data, it helps the US dollar to maintain yesterday's rebound gains, and may also restrict the upward space of gold.
French Prime Minister François Bellu lost the vote of confidence in the National Assembly and immediately announced his resignation. In addition, Japanese Prime Minister Shigeru Ishiba announced last weekend that he would resign as president of the ruling Liberal Democratic Party (LDP).
Unclear geopolitical support for gold prices
Israel launched an air strike in Doha, the capital of Qatar, with targeting the Hamas leadership, which has triggered widespread condemnation by the international www.xmhouses.community. The Qatar Prime Minister said the country reserves the right to respond to the blatant attack in Israel. Given that Qatar is the key mediator in the Israeli-Kazakhstan ceasefire negotiations, this matter may have a substantial impact on the negotiation process.
Poland has adjusted its air defense system to high alert, a move in response to Russia's most violent air strikes on Ukraine in recent weeks - which have raised concerns about the attack location approaching the Polish border. In addition, the Ukrainian Air Force issued an early warning, saying that Russian drones were suspected to have entered Polish airspace.
Trading reminder, be patient and wait for the data to www.xmhouses.come out
On Tuesday, the three major Wall Street indexes hit record highs in history, and this transmission effect pushed Asian stock markets to rise further.
This market environment may further curb the demand for safe-haven assets and gold, and the trading side needs to be vigilant. Traders are currently focusing on the U.S. Producer Price Index (PPI), which will be released later today, for new trading guidance.
The market focus will turn to the U.S. Consumer Price Index (CPI) released on Thursday - a data that will play a key guiding role in the short-term trend of the US dollar and determine whether spot gold will break further.
Technical Analysis
From the technical analysis, the daily relative strength index (RSI) is still in the overbought range, and waiting for a short-term consolidation or further pullback is more in line with the trading logic. Despite this, the 5-minute chart shows that it is still strongly bullish. 3640 is the neckline of the short-term double-bottom pattern. The gold price has successfully broken through 3640 (the measured increase after the gold price breaks through is 3660). Currently, 3640 is an important support. Before touching, the gold price has remained strong and bullish. If the gold price wants to continue to maintain the bullish pattern, 3626 must be held.
If it falls below the gold price will go near the $3,600 integer mark to find support. If the threshold continues to fall, you need to pay attention to itA weekly low of about $3,580; if it breaks further, gold prices may continue to fall revisionally, pushing towards the medium-term support level of the $3,565-3,560 range, and then testing the swing low of about $3,510 last Thursday.
On the other hand, the $3645-3655 range may become a short-term resistance level, with the above being the all-time high of about $3675 hit yesterday. If there is continuous buying, gold prices may continue to rise based on recent breakthrough momentum, and the target is to the $3,700 integer mark, which is also the measurement position of the recent triangle consolidation. However, the overall technical pattern shows that bulls may not be willing to build positions in large quantities for the time being, which means that the above threshold may become a strong resistance level for spot gold in the short term.
The above content is all about "[XM Forex]: Daily RSI overbought is still bullish? Gold opens low and leaves high, and American PPI leads the way tonight". It is carefully www.xmhouses.compiled and edited by the editor of XM Forex. I hope it will be helpful to your trading! Thanks for the support!
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