On Monday (August 2) in Asian market, the spot gold opened up and fell back. It fell from 1816.7 to 1808.3, a drop of around $8, and is now reported at $1811.1 per ounce. Looking back at the market situation last Friday, gold was under pressure below 1833. Affected by the strong US dollar, gold recorded a decline last Friday, falling to the line of 1810, and finally closed at $1814.0 per ounce. A bardo K-line was recorded on the daily line.

Regarding the fundamental part, China’s concept stocks continued to fall into the haze of China-US supervision. At the same time, U.S. stocks reported mixed results for the week, which contributed to the weakness and decline of U.S. stocks, which allowed safe-haven funds to flow into the U.S. dollar and boosted the U.S. dollar to strengthen. Although the Fed’s interest rate decision announced last week remained unchanged, and Powell continued to emphasize the dovish argument at the press conference, some Fed officials, such as St. Louis Fed President–Brad, said that under risk control, they tend to the plan to reduce debt purchases will begin in the fall. This makes some investors believe that the Fed has begun to prepare for the reduction plan while remaining unchanged, and this view will also support the rise of the dollar. In addition, some economic data performed beautifully on Friday, such as the monthly rate of personal expenditure in June in the United States and the final value of the University of Michigan consumer confidence index in July in the United States. The current expectations of the Fed’s early reduction are rekindled, which will affect the future performance of gold.

Technically, gold has formed a double top (M top) pattern on the daily chart. If the market falls below the 1808 line, there is a chance to test the 1805/1798/1790 position. In the 4-hour chart, the Bollinger Bands are showing signs of narrowing, and the KD indicator is low and there is a tendency to stick corners. Gold rushed higher and lowered in early trading, and the downward strength did not break below the key support position. It is still possible to have long position around the support level.

Resistance position: 1816/1822/1827

Support position: 1805/1798/1790

Investment Advice:

Long near 1810/1808, set risk management: 1803, target: 1815/1820/1825.

Analyzed by: Mr.Chris Lau, Independence analyst