Hua Seng Heng: Gold Rebounds Temporarily... Buy at $4,155

Thai broker Hua Seng Heng noted in its daily gold report that the metal is rebounding in the short term, identifying support levels at $4,155 and $4,125 per ounce, and resistance at $4,195 and $4,220. It mentioned that the expected limited upside makes selling likely near the $4,180 zone, forecasting the metal to trade in a range between $4,100 and $4,180.

The broker recommended traders to gradually buy gold upon testing the support level at $4,155, setting a stop-loss order if the price breaks below $4,125, and targeting profit-taking at the $4,195 resistance level. In the previous session, the metal recorded a high of $4,145 and a low of $4,103.

The report described the US labor market picture as mixed, as the US economy added only 29,000 jobs in September, falling short of expectations, while jobless claims remained near a 57-year low. The report cited Fed Governor Christopher Waller as saying another interest rate hike might be needed to curb inflation.

The broker highlighted US consumer sentiment data released by the University of Michigan Index at 19:30 Thailand time as the key event to watch during the session, and noted a report stating that the SPDR Gold Trust sold 5.71 tonnes of the metal. Investors track these technical levels as they determine entry and exit points in a market caught between pressure from rising yields and support from safe-haven demand.

What do these terms mean?

Support level: A price at which an asset struggles to fall further, as demand increases from investors who view it as cheap, acting as a temporary price floor.

Resistance level: A price at which an asset struggles to rise above, as selling pressure increases, and breaking above it signals the potential for further gains.

Stop-loss: A preset price at which a trader sells an asset to avoid larger losses if the price moves against their expectations, used for risk management.