Gold Declines as Market Optimism Fades

Fundamental Analysis

• U.S. stocks extended their losses, and the positive sentiment in the market has disappeared
• Gold is also lacking strong catalysts, and the Federal Reserve's hawkish stance is adding downward pressure

Market Optimism Fades

Gold briefly rose to $4,200 but soon lost momentum. The 26 EMA and 52 EMA are moving closer together, signaling weakening upward strength. Although gold formed a double bottom around $3,900, it failed to break above recent highs and has since pulled back.

The key focus now is whether the 52 EMA will act as a support line.

Behind this move is a series of hawkish comments from Fed officials, which has lowered expectations for a December rate cut. Reduced expectations for rate cuts strengthen the U.S. dollar, which is bearish for gold.

It remains a difficult judgment, but market participants will closely watch whether gold can maintain $4,000 and hold above the 52 EMA.

Gold Day Trade Strategy

On the 1-hour chart, gold is in a mild downward trend. It is not a strong downtrend, but prices continue to gradually make lower lows. The $4,000 level appears to be a solid support. Moving forward, the 26 EMA is expected to cap the upside as gold approaches the $4,000 zone. Traders should watch whether the 26 EMA continues to function as a resistance line.

A long-term downtrend is not expected at this stage, but gold may test the low $3,900 range again. The strategy is to wait for deeper pullbacks and look for buying opportunities.

Today's Key Economic Indicators

Note: Due to the U.S. government shutdown, economic releases may be delayed.

Indicator / Event	Time
U.S. Factory Orders (August)	24:00