Abstract:Spot gold rose slightly during the Asian session. The talks between Speaker of the House of Representatives Pelosi and Secretary of the Treasury Mnuchin were again fruitless overnight, and the epidemic in Europe and America led to a surge in the number of new cases.
On Tuesday (October 27), spot gold rose slightly during the Asian session. Overnight, the negotiations between Speaker of the House of Representatives Pelosi and Secretary of the Treasury Mnuchin were again fruitless, and the epidemic in Europe and America led to a surge in the number of new cases, and the three major US stock indexes plummeted. , Investors turned to seek a hedging from the US dollar, but the US election is more uncertain, and there are still bargain hunting orders to support the gold price.
At present, although the possibility of reaching an agreement before the US general election is further reduced, a larger stimulus agreement may be reached after the election, which supports the prospect of gold prices. Therefore, although the short-term gold price is under pressure to decline, if the stimulus is expected to further weaken, it is also an opportunity to enter the market in the long-term operation. The specific operation can follow the actual position guidance information.
In the horizontal adjustment after the gold price enters the second shock reduction mode, the upper and lower rails of the Bollinger Bands are the limits of the current horizontal adjustment and are also a reference for resistance and support. Therefore, this week, we will focus on the fluctuations in the second interval. While being bullish for a long period of time, pay attention to when the shorts will be sold out. Specific firm guidance plus WeChat One Three Zero Five Seven Four Four Three One Nine. Yesterday's 1895 support bullish expectations are consistent with market trends. In the day, attention is 1900 support bullish.
The weather turns cold, a new wave of epidemics rages in Europe and America
The United States, Russia, France, and many other countries have recorded record numbers of new crown infections. A new wave of epidemics has swept across parts of the northern hemisphere, forcing some countries to implement new restrictions. The surge in the number of infections cast a shadow over the economic outlook and intensified the pressure on the financial market on Monday, which also provided safe-haven support for the US dollar, making gold bulls hesitate.
U.S. election attracts the attention of gold market investors
At present, there is only one week before the US election day. The huge uncertainty of the election itself has attracted great attention from the gold market. Although the two candidates are elected, the United States will launch the next round of stimulus, which will also push the price of gold higher.
The trend and market sentiment of the gold market have been hesitating and will remain in this state until the election. Some investors choose to dump all their cash before the election, others are disappointed that the gold market has lost momentum, but on the other hand, some investors choose to buy on dips when the price of gold is falling.
It should be reminded that if Trump wins the election, it means that the new round of stimulus plan that the United States will launch in the future will be smaller than market expectations. This will provide the dollar with upward momentum and will also suppress the market’s demand for gold asset allocation. In other words, the price of gold will face a certain downside risk.