During Monday's (September 18th) Asian session, spot gold narrowly oscillated upward, and it is currently trading at 1928. Two U.S. data were released overnight, and U.S. bond yields did not fall much after the less-than-expected inflation expectations figure but then rebounded rapidly. The 10-year bond yield rose to 4.33%, and the USDX retraced from its high to 105.1 and then rebounded slightly. Meanwhile, gold prices stabilized at 1913 and strengthened to testing resistance at 1930, which is expected to be broken soon. Moreover, there is a super central bank meeting coming soon, but the United States will not raise interest rates in September, and the market may need to pay attention to the strike that began on September 15th. Although the nonfarm payrolls in September will not be impacted (the statistical period is the week of September 12th), if the strike lasts until October 9th, the impact will emerge. Moreover, the number of new jobs in the last three Nonfarm Payrolls has dropped to less than 150,000 people, and this strike may result in negative Nonfarm Payrolls for October. However, if a quick compromise appears to end the strike, the pressure of inflation will be added, which will again boost the rate hike expectations in November or even later.

Data: The U.S. New York Fed manufacturing index was 1.9 for September (the expected data was -10, and the previous data was -19). In addition, the industrial output monthly rate for August was 0.4% (the expected data was 0.1%, and the previous data was 0.7%). The one-year inflation expectation index fell to 3.1% (the expected data was 3.5%, and the previous data was 3.5%), while the five- to ten-year inflation is expected to be 2.7% (the expected data was 3%, and the previous data was 3%). Additionally, the consumer confidence index fell to 67.7% (the expected data was 69.1%, and the previous data was 69.5%).

Significant events: The negotiations demanded by the United Auto Workers (UAW) for a "4-day workweek + 36% wage increase" were unsuccessful. Consequently, 12,700 workers from the three major car manufacturers started a strike on September 15th officially, and the total participants are expected to be 150,000 people.

Today's focus: No essential data, and investors need to focus on the result of the strike.

Daily chart: The pattern last week was expected. It started to oscillate at the beginning and rebounded in the second half of the week. Last Friday, gold oscillated in the range from 1910 to 1930. As it was mentioned, gold would ascend to 1930 during the day if it got stable at 1913. The key idea for this week is that gold will grow further and test the previous high, returning to above 1950. Any retracements will be chances to go long, but investors need to catch the right time since several essential data will be released this week, though the gold trend will not be affected much. From the technicals, gold has appreciated for 2 days to turn better from its weakness. However, it did not break through 1930 and got suppressed by a triple tops pattern, indicating retracement spaces. With clear bottom shoulders, gold is expected to ascend, so any retracements will be chances to go long. For investors, it is important to focus on the support at 1918 and 1903, and the resistance at 1930 and 1953. If gold surges above 1930, the space above could be expected.

Trading recommendations: Buy at lows. If gold retraces to 1918 today, investors should go long with small positions and set the stop-loss at 1913. To take profits, the first target should be set at 1935, where investors could move the stop-loss to breakeven, and fix the second target at 1950. Remember that going short in the near term is not recommended as it may affect your bullish confidence.

Trading direction: Long

Entry price: 1918

Target price: 1935

Stop loss: 1913

Support: 1918.000/1903.000

Resistance: 1930.000/1953.000