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21/7 spot gold price analysis for FX:XAUUSD by Chloe_Wang

Fundamental analysis:
Spot gold price fell slightly, the intraday trend was volatile, and the US dollar strengthened, inhibiting the inflow of funds into safe-haven gold , although some people are worried about the rapid increase of covid-19 cases. Spot gold erased its intraday gains and closed at $1810.36 per ounce in late trading, marking its second decline in three trading days, as the rebound in U.S. bond yields suppressed the demand for interest-free asset gold . The yield on the 10-year US Treasury bond rebounded after falling early on Tuesday. Market speculation is that when the global epidemic returns, the Fed will continue to support the economy through ultra-low interest rates and the dollar’s strength has also weakened the attractiveness of gold as an alternative asset. As investors tried to judge bond yields, monetary policy and global growth prospects and many other factors, the price of gold stagnated after four consecutive weeks of rising. Gold , which is usually regarded as a safe haven in times of market turbulence, has also been hit by the new wave of covid-19 cases that has impacted the prospects for economic recovery. Some analysts said that despite the continued risk-averse mentality, the price of gold still cannot go higher, which indicates that speculative capital flows are still very weak, increasing the possibility of further corrections.

Technical analysis:

From the daily chart , gold price closed with a lower price, after being suppressed by Fibo 38.2, it fell back and returned below the RSI 50 axis. MACD downward momentum is about to end. The 4-hour Bollinger band began to expand outward, MACD began to show downward momentum but it was slightly weak. RSI was hovering below 50. There was a slight pullback demand in early trading today, and the resistance is expected to rise again afterwards.

Today’s strategy

Strategy 1: short position near 1815, take profit 1803, stop loss 1838

Strategy 2: long position near 1793, take profit 1802, stop loss 1789

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