Let me explain why gold staged a big rally yesterday at 21:30.
This rebound in gold was mainly driven by three factors:
First, the dollar and US Treasury yields pulled back in the short term, lowering the opportunity cost of holding gold;
Second, oil prices fell sharply, easing concerns about inflation and monetary tightening;
Third, after the earlier rapid decline, oversold conditions attracted dip buyers, triggering a short-covering rally.
However, the bearish trend in the longer-term moving averages remains unchanged. Until gold can hold above the 4,000 level on the daily chart, it will be difficult for the bulls to turn the tide and take the initiative.
On top of that, this week's calendar is packed with data: the US midterm elections, the ISM Manufacturing PMI, and Friday's nonfarm payrolls report are all due. Ahead of these major releases, traders are mostly inclined to test short positions at higher levels and cover them in the short term at lower levels. They are unlikely to rush into a one-way rally.
#XAU
This rebound in gold was mainly driven by three factors:
First, the dollar and US Treasury yields pulled back in the short term, lowering the opportunity cost of holding gold;
Second, oil prices fell sharply, easing concerns about inflation and monetary tightening;
Third, after the earlier rapid decline, oversold conditions attracted dip buyers, triggering a short-covering rally.
However, the bearish trend in the longer-term moving averages remains unchanged. Until gold can hold above the 4,000 level on the daily chart, it will be difficult for the bulls to turn the tide and take the initiative.
On top of that, this week's calendar is packed with data: the US midterm elections, the ISM Manufacturing PMI, and Friday's nonfarm payrolls report are all due. Ahead of these major releases, traders are mostly inclined to test short positions at higher levels and cover them in the short term at lower levels. They are unlikely to rush into a one-way rally.
#XAU