During the Asian session on Wednesday (September 27), spot gold fluctuated in a narrow range and is currently trading around 1900. It was mainly officials' remarks that dominated the dollar's movements overnight. Madis Muller, a member of the ECB's Governing Council, does not expect further rate hikes. Fed Governor Bowman said that as inflation has outpaced wage growth, the burden on renters has increased, highlighting the importance of the Fed's efforts to cool inflation, which means that interest rates need to continue to rise. The head of the Minneapolis Fed was more blunt, emphasizing that there is a 60% chance of a soft landing and that another 25 bps of interest rate hikes is needed this year. The divergence in the stances of European and American central banks strengthened the dollar index and made it hit a new stage high. Gold prices continued to pull back under pressure, falling to the lowest point since August 25 and oscillating around the 1900 mark. Recently, the RSI indicator of the dollar index has shown an overbought signal, which appears less frequently, but it is worth being wary of the risk of a correction of the dollar. Gold prices are also at an important psychological threshold, though there is still some support. If the XAUUSD pair is over-sold, investors can go long with small positions.

Data: The US FHFA House Price Index for July was 0.8% MoM, compared with the expected 0.40% and the previous reading of 0.30%. The US S&P/CS20 major cities house price index for July was 0.1% YoY, compared with the expected -0.3% and the previous reading of -1.17%. However, US new home sales fell to a five-month low in August at -8.7% MoM, worse than the expected -2.2%. The US consumer confidence index fell to 103 in September from the revised 108.7 in August, below the expected 105.5. The Present Situation Index edged up to 147.1. The gauge of consumer expectations for the next six months fell to 73.7, which is a record low since May.

Key data for investors to watch today includes US preliminary durable goods orders for August and EIA crude oil inventories for the week ended September 22.

Trading at the daily timeframe, the gold price was weaker yesterday, maintaining the previous day's downward movements, with a brief narrow rebound. In the Asian session, the price fell directly to 1900, and the daily chart continued to close with a bear candle. In the next couple of days, gold prices may still be weak, but investors must not chase selling short above 1900. Gold prices may also rebound in a weak pattern. If investors do want to sell the asset during the day, they should enter short positions at the resistance level, now at $1912 of the MA5. But if the price can be stable above $1910, it may be able to rise to $1921 of the previous MA20.

Traders can mainly go long at low during the day. If the price retraces to around 1895, you can go long with small positions with a bet on a short-term rebound. The stop loss is 1890. The first target to take profit is 1915, where you can reduce your positions and move the stop loss to break even, and the second target is 1922.

Trading Direction: Long

Entry Price: 1894

Target Price: 1915

Stop Loss: 1889

Support: 1893.000/1884.000

Resistance: 1912.000/1921.000