Spot gold rose slightly, and the price of gold is now reported to be around US$1958 per ounce. The well-known financial website Economies.com recently wrote an article on Wednesday to analyze the trend of the gold price.
In early Asian trading on Tuesday, spot gold broke through US$1,980 per ounce, hitting a maximum of US$1981.11 per ounce, setting a new record high. There was a dive in the intraday gold price in Asia on Tuesday. The price of gold fell below $1,940 per ounce in just a few minutes, which was nearly $50 per ounce from the daily high.
On Tuesday, European gold prices fell sharply again in the short-term in early trading, hitting a minimum of US$1,906.72 per ounce. Since then, gold has launched a strong rebound, and the price of gold has rebounded from a low of more than $50.
Economies.com wrote in the article that gold prices rebounded strongly from the $1910.10 per ounce area, suggesting that gold prices are expected to resume the main bullish trend. In addition, the stochastic indicator also sends positive signals.
(4-hour chart of spot gold source: Economies.com)
Economies.com pointed out that the price of gold needs to remain above the first support of $1937.20 per ounce, paving the way for the next target of $2000.00 per ounce.
Economies.com added that a breakthrough of US$2000.00/ounce will be a key factor for the price of gold to further rise to US$2068.00/ounce.
The upcoming Fed resolution may affect the short-term trend of gold prices. At 02:00 Beijing time on Thursday, the Fed will announce the July interest rate resolution, and then at 02:30 Fed Chairman Powell will hold a press conference.
Analysts pointed out that if the Federal Reserve demonstrates a dovish monetary policy stance, the U.S. dollar may be suppressed, thereby pushing the price of gold toward the goal of $2,000 per ounce.