On Thursday (December 8) in the early trading of the Asian market, spot gold opened in a fluctuating manner and fell to a new low of 1,781.3. The price of gold is now reported at 1,782.2 US dollars per ounce. Looking back at yesterday’s market, the overall price of gold showed a fluctuating upward trend on Wednesday. The market stabilized and began to rise during the Asian and European trading hours. Although there was some volatility during the US trading session, it quickly resumed the upward trend, refreshing the daily high to 1,790.3. Finally, the gold price closed at 1,785.8 US dollars per ounce , A positive line was closed on the daily line.

On the news, affected by the decline in the US dollar and US bond yields yesterday, spot gold boosted its rise and returned to above 1,780. The Fed is currently in a period of silence. Based on the information released by the Fed officials and the recent relatively bright U.S. economic data, investors still maintain their original bets that the Fed will raise interest rates by 50 basis points at the December meeting. In addition, according to economists quoted by foreign media, the Federal Reserve’s efforts to curb high inflation will push the U.S. unemployment rate to around 5.5%. The current U.S. unemployment rate in November is 3.7%. Although the performance of the non-agricultural employment data in November refuted this view, the future economic situation is not optimistic based on the analysis of the ADP data and the remarks of many US bank executives.

On the technical side, in the daily cycle, the Bollinger bands narrowed, the KD indicator dead forked downwards, on the 4th hour, the Bollinger bands narrowed, the KD indicator died fork, in the 1-hour chart, the Bollinger bands expanded, and the KD indicator bonded at the bottom sign. On the whole, the market still maintains a volatile trend. Observe the 1,770-1,790 range within the day, first rely on the lower support position to place long orders, and observe the upper resistance of 1,790. If you cannot break through, you can consider turning long to short.

Resistance position: 1,776/1,770/1,764

Support position: 1,790/1,795/1,800

Investment suggestion: buy around 1,778-1,780, defend 1,774, aim at 1,786/1,790/1,794.

Analyst: Mr. Chris Lau, Independent Analyst