Under the international gold price, support is at $1750

On Wednesday (October 13), international gold prices strengthened, but the increase was modest. Investors are waiting for US inflation data and the minutes of the Fed’s September policy meeting to find clues as to when the central bank will begin withdrawing its massive stimulus measures. The price of gold remains bearish in the short-term, with support at $1750 below.

At GMT+8 13:39, spot gold rose by 0.12% to US$1762.11 per ounce; the main COMEX gold contract rose by 0.17% to US$1762.3 per ounce; the US dollar index fell by 0.16% to 94.366.


Three Fed policymakers said on Tuesday (October 12) that the economy has recovered enough for the central bank to begin withdrawing support policies during the crisis. This strengthens the Fed’s expectation that the Fed will start reducing monthly bond purchases as soon as next month. Central bank cuts in stimulus measures and interest rate hikes tend to push up government bond yields and increase the opportunity cost of holding gold.

The number of job vacancies in the United States decreased in August, but still exceeded 10 million, which is a very high level. Due to the tight labor supply, the number of voluntary resignations surged to a record high in August, hindering employment growth.

White House officials warned that during this Christmas period, Americans may face rising prices and empty shelves. Officials are currently busy alleviating the global supply bottleneck that has plagued US ports, roads and railroads.

On the daily chart, the price of gold has started a three-wave downward trend from US$1,781, and the support below looks to the 38.2% target of US$1738. Wave 3 is a sub-wave of the downward (3) wave that started at $1834. (3) Lang's 61.8% target is at $1688. (3) Wave is a sub-wave of the downward ((Y)) wave that started from 1917 USD. The ((Y)) wave belongs to the adjusted IV wave that started at $2,075.

On the hourly chart, the price of gold has started a downward wave ((iii)) trend from US$1769. It is expected to fall below the 38.2% target of US$1757, and further drop the 50% target of US$1750. ((iii)) Wave is a sub-wave of Wave 3.