Gold: These factors are all bullish supports! Could gold prices soon break through 1800 this time?
The latest US employment data shows that US non-farm employment increased by 4.8 million in June, setting a record high. US President Trump said at a press conference that the employment data was surprisingly good, the economy was making a strong comeback, and he believed that the data in the coming months would be good. The next phase of the economic stimulus plan has been launched. Dailyfx believes that concerns about a second outbreak of the new coronavirus pandemic, whether due to safe-haven demand or expectations of further easing by the Federal Reserve, are constantly increasing the attractiveness of gold and stimulating a sustained rise in gold prices. If the US epidemic cannot be contained, the attractiveness of gold may last for a long time.
Time:
2020-07-03 22:26
FX168 Finance News (Hong Kong) reported that during Friday's European trading session, spot gold was fluctuating near 1775, reaching a high of $1777.07 per ounce for the day. Trading was light due to the US markets being closed for Independence Day.
Yesterday, the latest US employment data showed that in June, non-farm employment increased by 4.8 million, setting a record high. US President Trump said at a press conference that the employment data was surprisingly good, the economy was making a strong comeback, and he believed the data for the next few months would be good. The next phase of the economic stimulus plan has been launched.
Despite the strong employment data, some analysts have questioned the reliability of the non-farm payroll data. Moody's Analytics chief economist Zandi pointed out that the survey for US June employment data was conducted during the week of June 12 and did not include the past two weeks, that is, it did not take into account the problems caused by the suspension of the restart due to the resurgence of the COVID-19 epidemic in the United States.
Therefore, some market views believe that this non-farm report does not fully reflect the employment market. With signs of a new round of shutdowns emerging, the market is worried that the actual unemployment situation may be worse.
Technically: The bullish trend remains, but there are huge uncertainties ahead! The daily chart of gold shows that after retracing to the 1455 (Y-point) level on March 20, the price has continued to rise, reaching a high of 1789 (B-point) on July 1, setting a new high in nearly 8 years.
The current price is temporarily suppressed by the 1.27 extension: 1.27XA=AB, where X is the high point of 1765 on May 18, and A is the low point of 1670 on June 5. In addition, the upper track of the converging triangle also suppressed further price increases.
Support below is at the upward trend line since point Y (the lower track of the converging triangle, currently at around 1750), and the important support platform of 1745. If the price falls below the 1750-1745 support, it can basically be declared that gold will reach a short-term peak, thus leading the price to further fall to the 1700-1715 area.
The more obvious pressure above is around 1790 (the upper track of the converging triangle, 1.27XA) and the 1800 mark. If the price breaks through the 1790 level, it will inevitably impact the 1800 mark. Once the 1800 mark is broken, the future target is expected to point to the historical high of 1921!
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