Last night, after the 7th round of voting in the U.S. Senate on the Budget Bill failed, officials immediately resumed negotiations and proceeded to hold another vote shortly after to prevent the government from remaining shut down for too long.
The market reacted sharply, and Gold dropped more than 100 points within just 4 hours — from $4058/ounce down to $3949/ounce.
This can be seen as investors’ optimistic expectations that the Senate may soon reach an agreement and the government will reopen. At the same time, it also represents an opportunity for profit-taking on Gold after a period of “overexcitement” — having risen by 240 points since the beginning of October.
Therefore, in the short term, the market is likely to experience strong corrections depending on news related to the U.S. government — especially whether the Senate can reach an agreement and the upcoming NFP report tonight.
Technical Analysis:
In the short term, traders can look for BUY opportunities in two areas:
1: BUY around 394x – 395x when Gold retraces to complete the double-bottom pattern.
2: BUY on breakout when Gold breaks above the 399x resistance level.
Trí Hùng
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