Golden Autumn Drama: Ripples & Speculations Post-Fed Rate Cut
Here's the translation of the provided text into English: The September skies aren't just about the translucent yellow leaves; the financial markets are bustling with activity,especially our glittering treasures—gold and silver,which have been putting on one "golden autumn drama" after another.
Look,on the early morning of Thursday,September 22nd,as soon as the Federal Reserve made a move by cutting interest rates by 50 basis points,the news hit the market like a boulder thrown into a tranquil lake,causing a whirlwind of activity!
Today,let's discuss the intricacies behind this,and how our "golden nuggets" in our pockets will bounce around next.
First,let's talk about the US Dollar Index.
Hey,you wouldn't believe it,but it really played a heart-stopping "V-shaped reversal".
Early Thursday morning,as soon as the news of the Fed's rate cut hit the ground,the US Dollar Index plunged as if someone had yanked it down,almost breaking through the psychological defense line of 100.
But guess what?
It bounced back like a spring,reclaiming most of its lost ground.
This market move is more thrilling than the martial arts novels we read in our youth,truly exhilarating!
Now,let's take a look at gold,which is truly shining brightly,setting new highs as if it's child's play.
In the early hours of Thursday,as soon as the Fed cut rates,the gold price shot up,surging past the $2600 mark,a historic moment!
But the market always has a sense of humor; before everyone had a chance to celebrate,the price plummeted,dropping more than $50 in a flash,causing heart palpitations.
However,don't worry,we know gold's temperament; it won't easily give in.
Before long,it crawled back up,set a new high,and closed firmly above $2620.
This gold is like the "little strong" of our investment world,very resilient!
Next week is also of great significance for me,an old-timer.
Why?
Because it's the last week before the National Day holiday.
You see,the market before the holiday is bound to be turbulent,with news flying all over the place,and we must keep our eyes wide open.
Especially gold,which is now at a historical high,watching it climb step by step,I am both excited and anxious.
The most important concern for everyone is where the high point of gold will go.
I've been thinking,according to its past behavior,the numbers 20-30,50,and 80 are often followed by its phase highs.
That's why I've set the target for my long positions at the 2620-30 level in this wave.
But looking at the momentum now,the 2620-30 level is very likely to be breached,and we must be mentally prepared.
Speaking of which,I must mention silver,this "little brother".
Look at its daily chart; it's been a clear abc trend since the bottom at 26.4.
Whether it's the 38.2% level or the 61.8% level,they are the "auspicious places" for support and resistance.
Now,the ultimate target for silver has emerged—it's the area around 31.6-31.5,which also happens to be near its previous high.
So,we must ponder this position carefully.
What's more interesting is that both silver and gold,these "brothers," have now shown the sequence 7 signal on their daily charts.
Do you know what this means?
It means that on Monday and Tuesday next week,both silver and gold will continue to forge ahead!
If we translate this into points,if silver can reach around 31.6,then gold will have to jump about $25,which would be around the 2650 level.
You say,is this tempting or not?
However,I must remind you that although the reference points are tempting,the most important thing is still timing.
Even if the points are reached,we cannot easily take short positions if the time is not right.
After all,
the market is like the weather,it can change at any moment,and we must always be vigilant!