During the Asian session on Friday (September 29), spot gold fluctuated to downward and is currently trading around 1865. Overnight US data was largely as expected. The yield on the 10-year US Treasury note rose by 4.65%, recording a peak since October 2007. The yield on 30-year bonds rose as much as 4.80% to its highest since 2010. By contrast, the dollar retreated from a ten-month high, still failing to support the weak gold price. Spot gold prices continued to decline, falling as low as 1857. At present, the process of the dollar's rise is gradually revealing some risks. For gold prices, short-term weakness will remain in bearish sentiment. However, investors do not need to be too pessimistic, as the darkest moment will eventually be born to the sun. Every deep fall is an opportunity to take long positions. However, traders should also pay attention to stop loss.

Data: According to the latest data from the US Department of Commerce, the US annualized final value of personal consumption expenditures (PCE) in the second quarter was 0.8%, sharply revised down from 1.7%. The Fed's core PCE price index, excluding food and energy, was 3.7% annualized, unchanged from the previous and the expected values. Final estimates released by the Bureau of Economic Analysis (BEA) of the US Department of Commerce showed that US real GDP grew 2.1% in the second quarter, slightly lower than the 2.2% forecast and in line with the previous of 2.1%. The growth of the annualized Q1 GDP was revised from 2.0% to 2.2%.

News: On September 28, the U.S. Department of State spokesman Matthew Miller said, the U.S. Department of State is developing contingency plans to support Congress to provide funding for the government to avoid striking. Miller said the State Department still hopes that Congress will fulfill its responsibilities and provide funding for the government.

Key data for investors to watch today includes the US August Core PCE Price Index, Chicago PMI, as well as Euro CPI and PPI.

Trading at the daily timeframe, the dollar pulled back sharply yesterday, with the long bear candle covering two bulls. However, gold prices remained weak, with no decent rebound throughout the day, reaching a high of 1880, then all the way down to 1857, and finally closing a full bear candle. Gold prices also fell for four consecutive days this week, showing the weakness of the market. The key support below looks at 1850, which is also the lower edge of the box below. This position is temporary, but it may still gain some support. If this level could be broken effectively, then the medium and long-term gold price will have to go down to the previous low of 1800 to find support. During the day, if the gold price falls to 1855 in the Asian market, investors can also try to take a long position. When the price falls to 1850, you could add a little more position, and the stop loss can be set at 1848. If you want to go short, you can take chances when the market rebounds to 1875 and take small positions, but the best position to go short is in the range of 1880-1884.

Traders can mainly go long at low during the day. If the price retraces to around 1851, you can still go long with small positions in the short term, betting on a rebound. The stop loss is 1846. The first target to take profit is 1872, where you can reduce your positions and move the stop loss to break even, and the second target is 1884.

Trading Direction: Long

Entry Price: 1851

Target Price: 1884

Stop Loss: 1846

Support: 1855.000/1850.000

Resistance: 1872.000/1884.000