Gold prices rebounded significantly from the intraday low. How to trade next? FXStreet senior analyst analyzes the technical aspects of gold prices.
In early European trading on Monday, spot gold is located near $2740 per ounce, although it is still falling during the day, it is already significantly higher than the intraday low. FXStreet Senior Analyst Dhwani Mehta pointed out that from a technical perspective, as long as it stays above the 38.2% Fibonacci level, the gold price still maintains a 'buy on dips' trading strategy.
"Timing, location, and people are all favorable"! Is there no limit to the current rise in gold prices?
Since October 2022, gold has been much more "bullish" than the US stock market, and this trend may continue...
Iran has just received heavyweight news again! Market risk aversion sentiment further cools down, gold price plunges more than $20 within the day.
During Monday's Asian market session, spot gold fell again in the short term, with the current price around $2726 per ounce, dropping over $20 within the day. Previously, Israeli aircraft attacked military targets inside Iran last Saturday, avoiding oil and nuclear facilities. Iran has not responded immediately, and Bloomberg pointed out that the latest developments may reduce some safe-haven demand.
Exciting market news! Gold price plummeted more than $17 after opening sharply lower, oil price plunged more than 5%. Both Israel and Iran have major news.
24K99 News: After the start of trading in the asia market on Monday (October 28), the commodity market experienced a major rally. Gold and crude oil prices both plummeted after the opening. The relatively small scale of the Israeli attacks over the weekend has led some market participants to speculate that the tense situation may not escalate significantly.
Gold and crude oil plummeted at the opening! Israel did not attack Iran's oil facilities, and Iran did not retaliate.
Crude oil product opened with a plummet of over 5%. Limited attacks by Israel may ease concerns of direct conflict with Iran, but worries about Persian Gulf oil are not over yet.
BofA's Hartnett: The election will strengthen Wall Street's four core trades, but inflation and economic downturn will reverse everything.
Bank of America analyst Hartnett pointed out that the four core trading strategies on Wall Street now are, bearish on bonds, bullish on gold and technology stocks. Tightening immigration policies may trigger inflation, leading to further increase in gold prices. The market is worried that Fed rate cuts may lead to inflation and overheating of the economy, with bond yields unexpectedly rising after the rate cut, causing US stocks to become more concentrated. Now is not a good time to buy bonds and stocks.