Daily Commentary on Gold | ADP Falls Short of Expectations, Gold Prices Rebound

On the fundamental side, the US private sector employment data (ADP) for August increased by only 38,000 (expected 47,000, previous value 46,000), which reinforces signs of a slowdown in employment. As a result, market expectations for a rate hike by the Federal Reserve in September have cooled, and the international gold price rebounded.

Technically, the London spot gold price showed a daily candlestick with a long lower shadow, indicating an oversold rebound after the 4696–4282 USD/ounce range correction, but it failed to break above the 5-day moving average (around 4400–4410 USD/ounce). The 5/10-day moving averages have formed a death cross pointing downward, and the major correction has not reversed. Support levels to watch are at 4364 USD/ounce, 4330 USD/ounce, and 4300 USD/ounce. Resistance levels to monitor are at 4400 USD/ounce, 4420 USD/ounce, and 4441 USD/ounce.

Editor: Jiao Yang  Layout: Jiao Yang  Visuals: Zhang Zongwei 

Proofreading: Wang Bei  Review: Ni Jinhe