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Fundamentals

Spot gold depreciated with oscillations during Monday's (October 16th) Asian session, and it is traded at 1920. The recent market has been driven by risk aversion. Gold, U.S. dollars, and crude oil have all risen as investors flocked to buy safe-haven assets amid the intensification of the war in the Middle East. Gold prices rose more than 3% last Friday, recording the largest weekly gain since mid-March. We emphasized on Friday that if the gold could break through $1875, it would be likely to hit 1900. It did go like that. In the past week, we have been advising investors to be bullish and go long based on fundamentals, and the gold price jumped by &110 last week. The profit and loss ratio of bulls was really amazing. But what's coming next? With the escalation of the war between Israel and Hamas, more Middle Eastern countries may be involved in it. The gold price remains fundamentally bullish, so we can still go long on gold if there are pullbacks.

Data: The University of Michigan consumer sentiment for the U.S. is 63 in October, while it was expected to be 67.2 and the previous result was 67.7.

Today's focus: U.S. NY Fed Empire State Manufacturing Index for October.

Technical Analysis

Gold closed with a surge by 3% on Friday and breaking above 1884 and 1900 to reach 1910, once touching 1933. If you have followed our instructions from a long time ago, our judgment was accurate last week, and the gold was reversed as we mentioned from 1810. We also indicated that gold will not retrace before getting closer to the key resistance at 1884, and it retraced from 1885 to the lowest level at 1865. Besides, gold would be boosted to 1900 if it arrived at 1875. Nonetheless, a reversal followed the retracement, and gold appreciated at the end, investors who followed our instructions gained substantial profits. At present, gold is still under a bullish trend, and investors should go long after retracements. Today, investors should focus on the support in the range from 1910 to 1915, and further strong resistance will be at 1900. If gold stays above 1900, the bullish trend will maintain, and there may be retracements driven by taking profits. Investors may also lose even if they follow the right direction because they expect a retracement at highs and lose their positions. It would be worse if they didn't stop loss and get trapped. During the trade, it is essential to stop trading in this way when the profit/loss ratio is low. Today, investors should not follow the ascending trend but try to wait for a retracement. If gold retraces to 1915 and shows signs of stopping, investors could go long with small potions, and they could even wait until gold arrives at 1903 if they want to avoid risks.

Trading recommendations: Buy at lows. If gold retraces to 1903 today, investors could go long with small positions shortly, and set the stop-loss at 1889. To take profits, the first target will be at 1923, where they can move the stop-loss to breakeven, and the second target can be fixed at 1933.

Trading Recommendations

Trading direction: Long

Entry price: 1903

Target price: 1933

Stop loss: 1899

Support: 1915.000/1903.000

Resistance: 1933.000/1950.000