Gold still oscillates within 1600 to 1700 U.S. dollars

The highest international gold price rushed to 1694 US dollars this week, after the shock down, the lowest fell to 1604 US dollars, the volatility is close to 100 US dollars. At present, the gold price has strong support at 1,600 U.S. dollars, and at 1700 U.S. dollars, the pressure is relatively large, thus building a box oscillating range of 1600 to 1700 dollars. From a technical point of view, the weekly 5-day moving average wears below the 20-day moving average and the daily average moving average system also has signs of short positions. However, MACD and KDJ indicators have upward signs of gold. Whether short-term gold can stand firm at 1,600 U.S. dollars will be the key.

As of Friday, Germany and France still have a large analysis of the rescue measures, so as to postpone the release of new aid measures until next Wednesday. From the perspective of Germany and France, there is still great sincerity in reaching new rescue plans. The rescue plan is expected to include the following: EFSF leveraged to scale up (or reach 2 trillion euros), require private creditors to agree to a 50% reduction in Greek bonds, and banking recapitalization. To sum up, the euro zone banking sector was first to bear some of the default losses of Greek debt, and then the euro zone concentrated its efforts on bailout banking industry, and EFSF injected capital into the banking sector to help the banking industry recapitalize.

The author believes that the resolution of the European debt crisis will be long-term, and it will be difficult to effectively solve it in the short term. Once the new aid measures cannot be approved by the market, it will trigger a new round of systemic risks, so that the price of gold may fall below 1600 U.S. dollars, and it will go to 1500. The dollar is looking for the bottom. However, before Germany and France introduced a new policy next Wednesday, gold still oscillated within the range of 1600 to 1,700 US dollars. If the new aid measures are unfavorable, investors can short-swiftly go short and on the contrary, if the new measures are approved by the market, they can be operated shortly.