On September 23, international spot gold continued its sideways movement overnight, repeatedly testing the support level at 4330, with a tentative break below 4300 reaching as low as 4291. This persistence in low-level consolidation aligns with gold's typical behavior; the failure to break above 4410 indicates a lack of capital inflow into gold and, from a broader perspective, highlights that the market still lacks safe-haven catalysts to drive prices higher.
Without upward momentum, gold can only drift lower within its current trading range. The overnight dip revealed strong buying interest at lower levels after gold tentatively breached 4300, which clearly suggests that entering long positions within the 4300-4270 zone is a viable strategy. Starting with light positions and scaling in gradually, a medium-to-long-term hold requires a major catalyst to ignite the next significant move.
With this bottom-building approach in mind, our primary advantage remains the aggressive gold purchases by global central banks. Given the strong demand for physical gold, current prices still appear artificially suppressed, as the United States seeks a strong dollar and reduced dollar liquidity to support its economic cycles. While central banks worldwide are aggressively accumulating gold, seizing pricing power in the short term is unlikely, as the liquidity and operational networks built by London and New York over decades cannot be replaced by newly issued contracts. However, our goal must be to secure a place for Hong Kong and Shanghai in future gold settlements, which is why we see strong buying power at these low levels, serving as a confident foundation for our long positions.
On the technical front, the four-hour chart still leans bearish, with the MACD in a death cross and pullback phase, yet to form a golden cross. The bottom is clearly visible at these lows, but current selling pressure continues to probe, pushing prices down in test-like fashion. The market seems willing to absorb these dips, as buyers step in whenever prices hit low points. The 4300 level has become the current demarcation line, much like 4000 did in June and July, where any breach is quickly met with buying that lifts prices back up. The four-hour chart continues to show a range-bound pattern.
On the hourly chart, gold may engage in a tug-of-war around the 5 and 10-day moving averages at the 4330-4335 zone tonight. If prices predominantly remain below these moving averages for most of the evening, market sentiment could shift more bearish in the coming days, though this outlook hinges on bearish fundamentals, specifically whether Federal Reserve officials' speeches this week lean hawkish, which remains the biggest downward factor for gold. Amidst this consolidation, gold is always brewing new trends, and once it breaks out of the current range, there may be a period of horizontal movement, meaning early entrants could face a prolonged wait. SINA co-op major futures platform account opening, safe and fast. SINA statement: This news is syndicated from SINA cooperative media, and SINA's publication of this article is for informational purposes only and does not imply agreement with its views or verification of its content. The article is for reference only and does not constitute investment advice. Investors who act on it do so at their own risk.
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