Gold market analysis

"Gold Price Shows Strong Hourly Reversal Signal" 10/9/2025 9:26 Completed 

It was thought that the $3,659 reached by gold in the Asian session yesterday would be the ultimate historical high. However, gold shot up to $3,668 in the early New York session and then climbed to $3,674. But it left a large bearish engulfing candle on the hourly chart and dropped to $3,627 before the New York midday session. The daily range expanded to nearly $47. Gold formed a shooting star pattern on the daily chart, which was the first strong bearish signal since August 22. 

Big players use data to hide sell orders. 

The general investors may attribute the sharp rise of gold prices in New York to the fact that the US Department of Labor revised the total non-farm employment population for the 12 months ending in March this year downward by 911,000. Among them, the non-farm employment in private enterprises was revised down by 880,000, and the employment in trade, transportation and public utilities was revised down by 226,000, including a decrease of 110,300 in wholesale trade and 126,200 in retail trade; professional and business services positions were revised down by 158,000. 

The market is once again speculating about interest rate cuts, and at most, it's also hyping up the increased risk of the US economy falling into recession. However, judging from the performance of gold prices yesterday, the trend has clearly weakened. But have investors noticed that gold prices could first hit a new high for the day and then a new low within 75 minutes, and the fluctuation within the first 10 minutes was nearly 32 dollars? My understanding is that major players are trying to use the downward revision of US employment data to hide their selling pressure. Because ordinary investors would only think that the decline in gold prices is caused by the downward revision of the data. However, no matter how large the downward revision is, it's just speculation about the interest rate cut next week. But didn't Powell hint at this as early as August 22nd? 

$3,660 remains a strong resistance. 

As for the performance of gold prices, although they reached a high of $3,674 yesterday, they failed to hold above $3,660, which is the 270-degree vertical angle of the Gann Square, indicating that this level remains a significant resistance point. From the hourly chart, gold prices formed a bearish engulfing pattern after hitting a new historical high yesterday, and this morning they dropped to $3,621, breaking through both the 20 and 50 SMA. Looking at the Gann Square, the short-term support levels are $3,610, $3,560, $3,510, $3,460... Among these, $3,560 and $3,460 are relatively stronger. Recently, gold prices have been rising to new highs every day. Therefore, if they fail to reach a new high, especially if the Federal Reserve cuts interest rates next week and gold prices still cannot break through the top, it indicates that gold prices are likely to undergo further adjustments. 

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

MTF Special Analyst Zheng Guangfu