The international gold price looks at $1738 in the future

On Monday (October 11), international gold prices were slightly under pressure, due to the stabilization of the US dollar index and concerns that the Fed may begin to reduce stimulus this year amid weak employment data. Looking at the price of gold, the market outlook is $1738 per ounce.

At GMT+8 13:55, spot gold fell 0.04% to US$1756.46 per ounce; the main COMEX gold contract fell 0.07% to US$1756.3 per ounce; the US dollar index rose 0.01% to 94.117.


Last Friday (October 8), after the U.S. non-agricultural employment data was released, the price of gold hit a new high since September 22 to $1,781.41 per ounce, but in the end it gave up most of the gains and closed only 0.08% higher to $1,57.19 /ounce.

Data from the US Department of Labor last Friday showed that US employment increased by 194,000 in September, far below the expected increase of 500,000, and the increase was the smallest in nine months, affected by reduced school recruitment and labor shortages.

Despite the sharp slowdown in employment growth in September, as the latest wave of viral infections in the United States peaked and started to fall, coupled with the end of the generous unemployment subsidy program, employment growth may be boosted in the coming months. The Fed may begin to reduce its support for the economy next month.

On the daily chart, the price of gold has started a three-wave downward trend from US$1,781, and the support below looks to the 38.2% target of US$1738. Wave 3 is a sub-wave of the downward (3) wave that started at $1834. (3) Lang's 61.8% target is at $1688. (3) Wave is a sub-wave of the downward ((Y)) wave that started from 1917 USD. The ((Y)) wave belongs to the adjusted IV wave that started at $2,075.