The Relative Strength Index (RSI) is one of the most used technical indicators in the investment market. In the chart, it shows the percentage of the total fluctuation of the upward movement of the gold price, if its value is large, it means that the market is in a strong state; If the value is small, it means that the market is in a weak position.
Previously, as one of the two major opponents of the bulls, U.S. Treasury yields fell, but supported by the strength of the dollar, yesterday's Asian market, spot *** declined, and gold once fell below the $2030 ounce mark.
Markets are awaiting the release of the US Consumer Price Index (CPI) data in order to seek further direction from there. If the CPI eases more than expected, the data will go some way to adding more likelihood that the Fed will cut rates, further reinforcing the market's belief that the Fed will cut rates as soon as March this year.
Gold prices sharply** last week were replaced by a strong dollar index as the market steadily tapered bets that the Fed could start cutting interest rates as early as March 2024.
Economic data released last night showed that U.S. mortgage applications rose last week by the most since June, as borrowing costs hovered near seven-month lows. Data released Monday by the Mortgage Bankers Association (MBA) showed a 56%。
Gold has moved more than 3% from its highs around $2,090** as uncertainty over Fed rate cuts persists, with the 20-day exponential moving flat posing a strong obstacle. If gold falls below a three-week low near $2016, there could be more downside.
*Technical data on the daily chart shows that gold price trend risk is skewed to the downside, with gold trading below the directionless 20-day Simple Move Flat** (SMA). At the same time, the 100-day SMA and 200-day SMA converged around $1,962 ounces, providing long-term dynamic support. Technical indicators edged lower, but remained at neutral levels.
Investment is risky and should be traded with caution. In the face of the great uncertainty of the international market, investors should consider various factors as much as possible in the process of trading decision-making to prevent the sudden occurrence of risks and cause capital losses.