Gold prices rose after breaking out of the lower triangle pattern.

Gold prices rose after breaking out of the lower triangle pattern.

Dear followers:

Gold prices fluctuated sharply today.

Q: What is the reason for the sharp fluctuations in gold prices today?

Answer: Today’s market can be said to be a market affected by news.

After the United States announced its readiness for negotiations, the market experienced a series of fluctuations, with market sentiment ranging from “risk aversion” to “interest rate concerns.”

(1): The escalation of the Russia-Ukraine conflict affects energy supply: According to Reuters, a Ukrainian drone attack on Russia’s main oil port damaged an important oil pipeline and temporarily disrupted at least 40% of Russia’s oil export capabilities.

This is one of the worst oil supply disruptions in Russia’s modern history.

(2): The situation in the Middle East remains unclear: Although the United States issued a signal to “postpone strikes”, Iran refused to negotiate directly with the United States and military deployments continued.

This uncertainty supports demand for safe-haven assets.

(3): The yield on the 10-year U.S. Treasury bond rose to around 4.38%, putting pressure on the price of non-interest-bearing gold.

(4) Technically, the current price of gold fluctuates widely between US$4,200 and US$4,680, which is a rebound after a sharp decline rather than a trend reversal.

Conclusion: As shown in the chart, gold price attempted to break above the resistance level, but the validity of this breakthrough has not been confirmed.

If gold can hold above $4,500 and gradually test $4,630, the rebound may continue;

If gold falls below $4,400 again, a second wave of losses could occur.

Q: What is the current situation near $4,500?

Answer: The current market situation can be summarized as “the continuation of the corrective rebound, with greater resistance above.”

Upside Resistance: $4,630

Upside resistance: $4680-4820

Downside support: $4430-4400

Downside support: $4350-4325

Strong support area: $4250-4220

Suggested strategies:

Strategy 1: Buy on dips after confirming the support level (main strategy)

Entry point: focus on the $4430-4450 area.

First goal: $4500-4520

Target 2: $4550-4580

Stop Loss: Set below $4,400.

Strategy 2: Sell on Dips at Key Resistance Levels (Bounce Trading)

Entry point: If gold prices rebound to the $4550-4580 area.

Target: approximately $4480-4450.

Stop Loss: Set above $4,600.