The Fed continues to be "dove", gold is even more powerful

The market is full of variables, but it is also full of opportunities, which makes those who cry stop sobbing and those who laugh scream. There are fewer and fewer important teachers, but I who stay are becoming more and more important. What’s there to show off? My future self is laughing at me! This is a sign of progress and growth.



The Fed kept the target range for the federal funds rate unchanged at 5.25%-5.5%. The dot plot suggests that the Fed may cut interest rates three times in 2024, or 75 basis points. It is worth noting that Fed Chairman Powell rarely made a clear statement: If conditions are right, he will not wait until the inflation rate is 2% before cutting interest rates. Richmond Fed President Barkin: If inflation shows a good decline, the Fed will respond. Thinking inflation is more stubborn than the average Fed official thinks, it will cut interest rates twice in the second half of next year. Interest rate cuts have begun to come into view, and policymakers are thinking and discussing when it is appropriate to cut interest rates, "opening the door" to next year's interest rate cuts.

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Gold recently hit a new all-time high of 2150 and then fell back, with the Air Force falling rapidly to around 1972 to find support. Subsequently, influenced by expectations of a rate cut by the Federal Reserve, the bullish rally rekindled and returned to above the 2000 mark again. However, the failure to cross the 2050 mark indicates that there is a large amount of air force suppression above. At present, the bulls are still unwilling to give up. If it breaks through the 2030 mark, the upward trend will continue. In the U.S. market, affected by the "dove" announcement from Federal Reserve officials, gold broke through the 2030 mark and returned strongly to the vicinity of 2048. The bullish sentiment is relatively optimistic.



From the perspective of wave theory, gold was in the 4-wave correction stage from 2148 to 1972. Now 1972 has rebounded to the 2050 mark. This wave should be in the 5-wave rise stage. Since it is a 5-wave rise, then the subsequent breakthrough of the 3-wave high of 2148 is High probability. In addition, the Fed's current interest rate cut is clear, which has boosted the foundation for gold's rise, and the general direction is to continue to rise. However, what needs to be vigilant is that the historical high of 2148 has clearly peaked, the daily line is also closed with a long upward lead, and the Bollinger Bands are shrinking, which limits the short-term volatility. Today’s focus is on the 2050 mark. Once it breaks through, the upward trend will continue. Below, just focus on the support near 2035 and the defense at the 2030 mark.

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Gold strategy: long around 1-2035, stop loss 2029, target 2042-2047

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2-Short near 2060, stop loss 2066, target 2052-2048


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Transaction en cours:

The price of gold is still very stable, so I am sure that my analysis is correct.

Transaction en cours:

Still some way off my desired goal, but this should be there soon