October 1st witnessed a volatile trading session for gold, characterized by dramatic price swings throughout different market sessions. During Asian trading hours, gold opened with upward momentum and fluctuations, reaching session highs near the $2,671 level by late Asian trading. The European session brought significant selling pressure, with prices plummeting approximately $80 to touch the $2,592 area. However, the US session saw a strong recovery, with gold reclaiming most of its earlier losses to close at $2,657, marking the fourth consecutive daily gain.
On this Wednesday (October 1st), during the National Day golden week period, may all traders enjoy precious moments like gold itself - embracing both the excitement and joy of the "golden week" holidays, along with the stability and rewards of a "golden career," and maintaining the peace and satisfaction of a "golden mindset." Wishing everyone a happy holiday season and success in all endeavors!
Yesterday's price action saw some investors taking profits, pushing gold below the $2,600 level with lows reaching near $2,593. This technical pullback proved short-lived as bargain hunters quickly entered the market, ultimately driving prices back above the $2,650 level by the close.
The ongoing stalemate between US political parties over funding appropriations continues to amplify gold's market resilience. A potential government shutdown threatens the release of crucial economic data, including Friday's employment report, significantly increasing market uncertainty and strengthening safe-haven demand. This represents a key factor behind the current strength in gold buying interest.
From a technical perspective, gold maintains a clearly bullish overall structure. Tuesday's successful test and rebound from the $2,585-$2,595 support zone demonstrates strong buying interest in that area. On the upside, gold needs to effectively break through the $2,670-$2,680 resistance zone to potentially open further upward momentum toward the $2,700 milestone. Conversely, downside support levels to monitor include $2,640-$2,630, followed by the $2,600-$2,590 area.
The primary focus remains on developments regarding the US government shutdown and non-farm payroll guidance. Should shutdown risks escalate or employment data disappoint, increasing long positions would be appropriate with continued bullish outlook. Conversely, if the shutdown crisis resolves and employment data exceeds expectations, temporarily abandoning long positions and considering short opportunities may be warranted.
Therefore, today's trading strategy suggests:
Gold: Long positions at $2,658-$2,660, stop loss at $2,650, targets at $2,680-$2,690-$2,700 levels. If the shutdown crisis resolves and prices break below $2,640 support, consider reversing to short positions targeting a break of $2,600.
Key Economic Data and Events to Watch Today: Wednesday, October 1st, 2025
8:15 PM: US September ADP Employment Change 9:45 PM: US September S&P Global Manufacturing PMI Final 10:00 PM: US September ISM Manufacturing PMI 10:00 PM: US August Construction Spending Monthly Rate 12:15 AM (Next Day): Fed's Barkin speaks on economic outlook
