Gold price breaks through another key Fibonacci resistance! Chief analyst of FXStreet: gold price is expected to rise more than 30 dollars

24K99 - In the Asian market on Thursday (August 31), spot gold continued its upward trend, and the gold price now reported about 1948 dollars/ounce. Valeria Bednarik, chief analyst of FXStreet, wrote the latest article to analyze the prospect of gold technology.

Bednarik pointed out that the depressed US macroeconomic data increased the pressure on the US dollar. Gold prices continued to rise, breaking the 1940 dollar/ounce mark. The price of gold once climbed to 1949 dollars/ounce in Wednesday's session, the highest level in four weeks.

(Data picture)

It is worth noting that after the gold price broke through the 50% Fibonacci pullback of 1982.12 dollars/ounce - 1884.77 dollars/ounce on Tuesday, it overcame the next key Fibonacci resistance of 1944.85 dollars/ounce, which is 61.8% of the Fibonacci pullback of the above decline.

Gold prices ended higher on Wednesday as more weak economic data from the United States strengthened the expectation that the Federal Reserve would suspend interest rate hikes, and US dollar and US bond yields fell. Spot gold closed up $5 at $1942.42 per ounce, hitting a intraday high of $1949.10 per ounce.

Bednarik said that gold has maintained a positive momentum and is about to confirm its rise to 1982 dollars/ounce.

On Wednesday, the American ADP employment report, known as "small non farm", showed that the number of private sector employees in the United States increased by 177000 in August after a seasonal adjustment, which is expected to be 195000, far lower than the increase of 371000 in July, the smallest increase in five months.

In addition, the data released by the US Department of Commerce on Wednesday showed that the annualized quarterly growth rate of the real gross domestic product (GDP) in the second quarter of the US, adjusted for seasonality and inflation, was revised from 2.4% of the initial value to 2.1%, lower than the expected 2.4%.

After the latest US economic data was released, the "Federal Reserve Observation Tool" of the Chicago Mercantile Exchange (CME) showed that the probability of betting on suspending interest rate hikes in September rose to nearly 91%, compared with 88.5% before the data was released. The probability of suspending interest rate hikes in November also rose to 59% from 52% the previous day.

Analysis of short-term technical prospect of gold

Bednarik said that gold prices remained bullish. The daily chart shows that some technical indicators have lost their upward momentum, but continue to move forward in the positive area. At the same time, gold prices were above the 20 day simple moving average (SMA) and the 200 day SMA, close to the moderate 100 day simple moving average of $1955.80/ounce.

Bednarik added that the 4-hour trend chart showed that the technical indicators were slightly lower, but still at the overbought level, which was not enough to confirm the temporary top. At the same time, the 200 cycle SMA provides intraday support, while the short-term moving average is still far below the 200 cycle SMA. If the daily closing price is near the current level, the gold price will aim at the high of $1982.15/ounce hit at the end of July.

(4-hour spot gold chart source: FXStreet)

Bednarik gives the latest key support and resistance levels of gold price:

Support level: 1933.30 dollars/ounce; 1921.80 USD/oz; 1907.30/oz

Resistance level: 1955.80 dollars/ounce; 1972.40 USD/ounce; 1982.15 USD/oz

At 10:18 Hong Kong time, spot gold was reported at 1947.68 dollars/ounce.

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