After falling from a high of 4550 to a low of 4275 last week, gold has entered a period of short-term consolidation. Given the current regional political situation, gold's safe-haven appeal is still likely to rise further at any time. However, gold still needs a significant pullback before it can move forward further, so in the short term, it is expected to experience multiple rallies followed by pullbacks.
On Monday, in early Asian trading, gold gapped higher due to weekend news, and the price rose sharply. Although there was a slight pullback, the price successfully broke through 4450, indicating that safe-haven demand has not yet subsided, leading to repeated market fluctuations.
Judging from the current situation, the market will likely experience a correction before hitting a high point, but there are also many data releases this week, including the US non-farm payroll data. Short-term volatility will increase, so it is recommended to manage positions carefully and take profits promptly to avoid market fluctuations impacting your account.
Current market trends clearly show a head and shoulders bottom pattern forming on the 4-hour chart, which has been successfully broken in the short term. At the same time, the 4-hour MACD indicator has turned bullish, and further volume is expected.
In the short term, we need to watch whether the price can stabilize above 4450. If it stabilizes, a volatile upward movement towards 4480-4500 is expected, followed by another surge on Tuesday, and then a period of consolidation. If there is a significant pullback during the US trading session, be cautious of a repeat of last Friday's price action.
Trading suggestion:
Buy if the price retraces but fails to break through 4400, with a stop loss at 4380 and a profit target of 4450-4480-4500. I will post more strategies in the channel.
On Monday, in early Asian trading, gold gapped higher due to weekend news, and the price rose sharply. Although there was a slight pullback, the price successfully broke through 4450, indicating that safe-haven demand has not yet subsided, leading to repeated market fluctuations.
Judging from the current situation, the market will likely experience a correction before hitting a high point, but there are also many data releases this week, including the US non-farm payroll data. Short-term volatility will increase, so it is recommended to manage positions carefully and take profits promptly to avoid market fluctuations impacting your account.
Current market trends clearly show a head and shoulders bottom pattern forming on the 4-hour chart, which has been successfully broken in the short term. At the same time, the 4-hour MACD indicator has turned bullish, and further volume is expected.
In the short term, we need to watch whether the price can stabilize above 4450. If it stabilizes, a volatile upward movement towards 4480-4500 is expected, followed by another surge on Tuesday, and then a period of consolidation. If there is a significant pullback during the US trading session, be cautious of a repeat of last Friday's price action.
Trading suggestion:
Buy if the price retraces but fails to break through 4400, with a stop loss at 4380 and a profit target of 4450-4480-4500. I will post more strategies in the channel.
Trade active
The price experienced a slight pullback at 4450. Please pay attention to the extent of the pullback and the entry point.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.