On Monday (July 19) Asian market in early trading, spot gold oscillated in a range after the opening, consolidating between 1817.1 and 1810.2, and is now quoted at 1813.1 US dollars per ounce. Looking back at last Friday’s market, gold on Friday was affected by the strong performance of the US dollar. It fell to the lowest line of 1808.6 and closed at US$1811.3 per ounce. A negative K was received on the daily line. On the news, Fed Chairman Powell said at a congressional hearing last week that now is not the time to change the loose monetary policy. Affected by Powell’s dovish remarks, gold continues to be boosted. Inflation and employment growth are both key factors that determine the Fed’s monetary policy. At present, in the short term, the main goal of the Fed is to promote employment growth. In terms of the epidemic, the Delta virus has spread widely in Southeast Asia. Now the epidemic in Indonesia is particularly severe. On July 17, 51,952 newly confirmed cases were recorded. The spread of the epidemic still continues, affecting the economic production of the region, which in turn also affects The pace of global economic recovery.

Technically, spot gold closed the K-line pattern of the evening star on the daily chart, suggesting that the gold market outlook has a chance to continue to fall. On the daily chart, the market is under pressure on the Bollinger Bands, and the KD indicator is at a high level. On the 4-hour chart, the KD indicator is low and there are signs that a golden cross is formed, there may be a rebound in the short-term. In the other 4-hour chart and 1-hour chart, the lower rail of the Bollinger Band is located near 1806/1805.

Resistance position: 1816/1822/1827

Support position: 1806/1798/1791

Investment Advice:

#1: Short gold in the 1820-1822, stop loss: 1828, target 1812/1808.

#2: Long Gold in the 1808-1805, stop loss: 1803, target 1818/1822.

Analyzed by: Mr. Chris Lau, Independent Analyst