Gold market analysis

"Gold Price Faces Strong Resistance at $4,210" 13/11/2025 10:04 Finalized 

Yesterday, the gold price suddenly rose sharply in the New York morning session. The spot gold price broke through the long-standing resistance level of $4,140 and reached a high of $4,211.67 in the New York midday session before stabilizing. The reason for this can be attributed to the announcement by the president of the Atlanta Federal Reserve, Raphael Bostic, that he will retire at the end of February 2026. The reason is that he is regarded as a hawkish Fed official who has often supported maintaining interest rates or raising them to control inflation. After his retirement, Trump is likely to appoint someone who supports interest rate cuts to fill the vacancy, adding a dovish official to the Fed. And when Powell's term ends in May next year and he does not seek reappointment, Trump will surely appoint someone with a dovish stance as the Fed chair, making monetary policy more dovish. This is the reason for the sudden rise in the gold price. 

Financial markets are subject to human influence. 

As the gold price and other financial asset prices are increasingly dominated by human factors (Trump), the trend is becoming more and more irrational. Once Trump indicates that he has no intention of influencing the independence of the Federal Reserve, the gold price is bound to fall sharply, which must be guarded against. On the other hand, even if dovish officials are appointed to the Federal Reserve, if the US inflation rate remains above 3%, on what grounds can the official support a rate cut? 

October's CPI is expected to influence gold prices. 

Yesterday, the gold price performed exactly as I predicted. After breaking through $4,150, it challenged $4,210. The gold price reached as high as $4,211.67 yesterday, achieving the target. However, $4,210 is located at the 180-degree angle of Gann's square, which is a strong resistance level. As a result, after breaking through this level, the gold price fluctuated and fell back. In the early Asian session today, it dropped as low as $4,180.17 and has since been fluctuating within a range of about $10. Currently, the gold price is still above the neckline of the double top on the hourly chart at $4,186.4. I estimate that there will be intense battles between bulls and bears. However, unless the gold price significantly breaks through $4,210, the risk of a decline remains high. Therefore, I temporarily judge that the gold price will fluctuate between $4,210 and $4,160. The release of the US October CPI tonight will be the main factor influencing the short-term trend of the gold price! 

The above content is for reference only and does not constitute investment advice.