Analysis of the Latest Gold Market Dynamics
Gold prices experienced a significant correction after reaching a record high, primarily due to a stronger US dollar and easing geopolitical tensions.
Geopolitics: Israel and Hamas reached a ceasefire agreement, weakening gold's safe-haven appeal.
US dollar trend: The US dollar index rose for four consecutive days, hitting a two-month high, making it more expensive to hold gold.
It is undeniable that gold prices had previously risen too sharply, and technical overbought conditions triggered a large number of long profit-taking, leading to a price correction.
Technical Analysis:
Current Trend and Pattern: Gold prices have fallen sharply after reaching a record high of $4,060, with a large bearish candlestick closing on the daily chart, indicating that short-term upward momentum has weakened and the market has entered a period of high-level consolidation.
Key Resistance and Support:
$4000-4010 (psychological barrier & short-term resistance)
$3940-3950 (4-hour chart starting point & near-term resistance)
$4050-4060 (historical high & double top resistance)
$3910 (lower support band on the 4-hour chart)
$3840 (core trend support; a break below could reverse the uptrend)
Current Trading Strategy:
Main Concept: Range-bound Trading
Buying low and selling high within the $3910-4010 range is the current primary strategy.
Long Strategy (Buy on Pullbacks)
Ideal Entry Area: $3940-3950 or around $3910.
The initial target can be seen in the $3980-4000 area.
Short Strategy (Short on Rebounds)
Ideal Entry Area: When gold prices rebound to the $4,000-4,010 resistance zone or the $4,050-4,060 double top resistance zone.
Target Outlook: The short-term target can be seen below the support zone of $3950-3940.
Breakthrough Response Strategy
Breakout Above Key Resistance: If gold prices break through and stabilize above $4,060, it will signal the end of the correction and the potential for new upside potential. Long positions can then be entered.
Breakdown Below Key Support: If gold prices break below $3,910 and threaten the core support of $3,840, it could signal a deeper correction. Short-term trading should focus on waiting and watching or shorting on rallies.
Gold prices experienced a significant correction after reaching a record high, primarily due to a stronger US dollar and easing geopolitical tensions.
Geopolitics: Israel and Hamas reached a ceasefire agreement, weakening gold's safe-haven appeal.
US dollar trend: The US dollar index rose for four consecutive days, hitting a two-month high, making it more expensive to hold gold.
It is undeniable that gold prices had previously risen too sharply, and technical overbought conditions triggered a large number of long profit-taking, leading to a price correction.
Technical Analysis:
Current Trend and Pattern: Gold prices have fallen sharply after reaching a record high of $4,060, with a large bearish candlestick closing on the daily chart, indicating that short-term upward momentum has weakened and the market has entered a period of high-level consolidation.
Key Resistance and Support:
$4000-4010 (psychological barrier & short-term resistance)
$3940-3950 (4-hour chart starting point & near-term resistance)
$4050-4060 (historical high & double top resistance)
$3910 (lower support band on the 4-hour chart)
$3840 (core trend support; a break below could reverse the uptrend)
Current Trading Strategy:
Main Concept: Range-bound Trading
Buying low and selling high within the $3910-4010 range is the current primary strategy.
Long Strategy (Buy on Pullbacks)
Ideal Entry Area: $3940-3950 or around $3910.
The initial target can be seen in the $3980-4000 area.
Short Strategy (Short on Rebounds)
Ideal Entry Area: When gold prices rebound to the $4,000-4,010 resistance zone or the $4,050-4,060 double top resistance zone.
Target Outlook: The short-term target can be seen below the support zone of $3950-3940.
Breakthrough Response Strategy
Breakout Above Key Resistance: If gold prices break through and stabilize above $4,060, it will signal the end of the correction and the potential for new upside potential. Long positions can then be entered.
Breakdown Below Key Support: If gold prices break below $3,910 and threaten the core support of $3,840, it could signal a deeper correction. Short-term trading should focus on waiting and watching or shorting on rallies.
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Free Signals：t.me/+JvIxIje7hkszNjMx I will always be the best gold trader, I am Katyusha
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.