Ahead of the Federal Reserve's interest rate decision on October 29, gold notched two consecutive wins. After the rate decision, gold swung sharply up and down without any major directional move. Looking ahead, the market will speculate on the Fed's expected rate adjustment in December. Today, attention turns to US PCE price data, GDP data, and the eurozone interest rate decision.
From a technical perspective, gold whipsawed after the Fed decision, printing a low of 4024 and a high of 4082. Currently, gold is still trading between the overnight high and low. The probability of gold breaking out of the post-Fed-decision range in the near term is seen as low, and repeated shakeouts are expected. Short-term range trading is the preferred approach, placing stop-losses at both boundaries, entering and exiting quickly without overstaying, and avoiding long-held positions to prevent profits from swinging back and forth.
The 4024 low and the 4082 high are clearly defined. Selling into rallies that stall and buying into pullbacks that stabilize is the strategy. Today, key focus is on the 4024 low. Above this zone, short-term long positions with a bullish bias can be maintained. On rallies, short positions can be initiated with 4082 as the stop-loss. Continue to observe and wait for signals, and patiently wait for the right levels. The dollar index's back-and-forth tug-of-war is also causing gold to fluctuate up and down. Related products can be referenced for positioning. For those more aggressive, gold can be lightly bought here around 4037, and shorted on rebounds around 4070.
Investors should note that the above content is for reference only and does not constitute investment advice. Trading involves risk, and investors should proceed with caution.
Comments