Market Reviews of the Previous Day:
During NY session on 29 July, the dollar index oscillated and retreated.
Before the unified trend formed in the market, there are still many uncertainties in the future. The recent repeated oscillation in the wide range maintained.
The political battle between the U.S. Republican and Democratic continues. They competed because of the general election next year. This was initially a simple political game, but it turned to a frequent speculation in the market. Price fluctuated and repeated.
This political game will eventually be settled and there should be no major impacts on the overall trend. It is not the focus of long-term market.
The U.S. Department of Commerce announced the second-quarter gross domestic product and the related revised data from previous few years. The report shows the economic situation is worse than expected, and the current recession is more serious.
The weak economic data created pressures on the dollar. Regardless of the U.S. debt crisis, the slowdown of economic growth ensures that the Federal Reserve maintains the policy of nearly zero interest rate in the foreseeable future.
GMT+8 15:55 Germany Manufacturing Purchasing Manager's Index (July);
GMT+8 16:00 Eurozone Manufacturing Purchasing Manager's Index (July);
GMT+8 16:30 U.K. Manufacturing Purchasing Manager's Index (July);
GMT+8 17:00 Eurozone Unemployment Rate (June);
GMT+8 22:00 U.S. Construction Spending (June);
GMT+8 22:00 U.S. Institute for Supply Management ISM Manufacturing Index, pre-value 55.3 (July).
Considered the major characteristics of continuity from the trend, if the price maintains above 1603.85, the recent uptrend will not change. After further breakthrough, the partial target will be at 1644.27. The further support is located at 1,600, and the low level of 1583.80 at July 22.
After gold reasonably broke through the long-cycle secondary adjustment pattern before closing, supports were densely distributed. Each support can be analyzed as a reference of long position. Theoretically the upward trend of gold is clear.
Currently long position remains. Once the price falls below 1576.50, 1567,1558 and 1546 USD, and the partial pattern occurs, downward range appears.
Trading suggestions:
Buying orders could be held appropriately with take-profit at 1610.97. Short position could be open after a further breakthrough continues at closing, targeting at 1644.27. Or when the retracement appears in the hourly chart, long position could be considered.
During NY session on 29 July, the dollar index oscillated and retreated.
Before the unified trend formed in the market, there are still many uncertainties in the future. The recent repeated oscillation in the wide range maintained.
The political battle between the U.S. Republican and Democratic continues. They competed because of the general election next year. This was initially a simple political game, but it turned to a frequent speculation in the market. Price fluctuated and repeated.
This political game will eventually be settled and there should be no major impacts on the overall trend. It is not the focus of long-term market.
The U.S. Department of Commerce announced the second-quarter gross domestic product and the related revised data from previous few years. The report shows the economic situation is worse than expected, and the current recession is more serious.
The weak economic data created pressures on the dollar. Regardless of the U.S. debt crisis, the slowdown of economic growth ensures that the Federal Reserve maintains the policy of nearly zero interest rate in the foreseeable future.
July 29, international gold closed higher, hitting an officially high record. The U.S. GDP was disappointed. The negotiation deadlock between the U.S. government and the Congress regarding the increase of the federal debt ceiling still continues.
Key Economic Data and Events:GMT+8 15:55 Germany Manufacturing Purchasing Manager's Index (July);
GMT+8 16:00 Eurozone Manufacturing Purchasing Manager's Index (July);
GMT+8 16:30 U.K. Manufacturing Purchasing Manager's Index (July);
GMT+8 17:00 Eurozone Unemployment Rate (June);
GMT+8 22:00 U.S. Construction Spending (June);
GMT+8 22:00 U.S. Institute for Supply Management ISM Manufacturing Index, pre-value 55.3 (July).
Gold:
Gold opened at 1615. 85 USD on 29 July, with intra-day Low at 1610.97 USD and intra-day High at 1632.41 USD, eventually closing at 1626. 91 USD. Intra-day range of 21.44 USD was seen.
Gold moved upward after the choppy consolidation at high level on last Friday. The market trend did not continue at closing. It is waiting for the short-term direction.Gold opened at 1615. 85 USD on 29 July, with intra-day Low at 1610.97 USD and intra-day High at 1632.41 USD, eventually closing at 1626. 91 USD. Intra-day range of 21.44 USD was seen.
Considered the major characteristics of continuity from the trend, if the price maintains above 1603.85, the recent uptrend will not change. After further breakthrough, the partial target will be at 1644.27. The further support is located at 1,600, and the low level of 1583.80 at July 22.
After gold reasonably broke through the long-cycle secondary adjustment pattern before closing, supports were densely distributed. Each support can be analyzed as a reference of long position. Theoretically the upward trend of gold is clear.
Currently long position remains. Once the price falls below 1576.50, 1567,1558 and 1546 USD, and the partial pattern occurs, downward range appears.
Trading suggestions:
Buying orders could be held appropriately with take-profit at 1610.97. Short position could be open after a further breakthrough continues at closing, targeting at 1644.27. Or when the retracement appears in the hourly chart, long position could be considered.
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