Gold trading strategy on October 5: The Fed's reduction is imminent, and the bullish rally will be tested

On Tuesday (October 5), spot gold fell sharply, and the technical situation of gold was too much. However, under the background of the Fed's shrinking, the short-term trend is difficult to judge. Investors are advised to continue to wait and see.


Daily level: The price of gold has risen for the previous three consecutive times and has crossed the important resistance of the downward trend line. However, the sharp decline during the Asian session has clouded the further rise of gold prices.

From a technical point of view, MACD Golden Cross and RSI are operating around 50, which also shows that the overall pattern is too large. However, under the background of the upcoming reduction of QE by the Federal Reserve in November, the space above gold may be limited.

The short-term gold price trend is mixed, and the direction is not very clear. It is recommended that investors continue to wait and see.

The initial resistance above focuses on the 38.2% retracement at 1764.27, and further attention is paid to the 50% retracement at 1777.59 and the 50-day moving average at 1772.97.

The initial support below focuses on the 10-day moving average of 1751.68, and further attention to the low of 1738.12 on September 23 and the low of 1721.76 on September 29.

(Spot gold daily chart)

Resistance levels: 1764.27; 177.59; 1792.97
Support levels: 1751.68; 1738.12; 1721.76

Short-term operation advice: wait and see first

GMT+8 14:01, spot gold was quoted at US$1757.59 per ounce.