Gold emergency analysis: position opening strategy!

First: What happened after the breakout of $4,410?

The market reacted strongly: the $4,410 mark was broken, and buyers’ last line of defense collapsed.

Generally speaking, sellers have complete control over the market.

Second: What is the reason for the fall in gold prices?

1. The biggest negative factor: Iran refuses to negotiate.

Iranian Foreign Minister Araqchi made it clear that Tehran has no intention of negotiating with the United States and believes that Trump’s “15-point plan” is “extremely harsh and unreasonable demands.”

The conflict in the Middle East has caused oil prices to rise, and rising oil prices have led to rising inflation expectations, forcing central banks around the world to maintain high interest rates. Rising interest rates have greatly increased the cost of holding gold.

Safe-haven demand has been completely overshadowed by interest rate expectations. This is the basic logic behind this round of decline.

2. The yield on the 10-year U.S. Treasury bond is close to 4.4%. With a risk-free return of 4.4%, who wants to hold interest-free gold?

Three: Technical analysis:

Conclusion: The downtrend remains dominant, but according to technical analyst consensus, we have now entered a buy zone.

1: The 4410-4420 area turns from support to resistance.

2: The 4350-4375 area is the first support area and major price level we focus on.

If this area is broken, the next support level will be around 4300-4311.

Below, the area around the March 23 low is 4099-4150.

3: The market is increasingly demanding technical rebounds.

Fourth: Trading Strategy

Strategy No. 1: Buy when the price drops to support; this is the go-to strategy when opening a trade.

Buy: Range 4360-4380

Stop loss: less than 4330

Take profit: 4410-4420, 4450-4460, 4520-4550

This is a strategy that relies on rallies rather than buying low. The second strategy: sell on the rebound.

Sales: Range 4410-4420

Stop loss: above 4450

Take profit: 4370-4380

This is a rebound selling strategy that is only suitable for traders with short-term trading experience to quickly enter and exit the market.

Until price stabilizes above 4410, any rise should be viewed as a bounce rather than a reversal.

Don’t declare a price “bottom” immediately after a price increase.

We only trade at key price levels and are not influenced by emotion. Now that the support area of ​​4350 has been reached, it is time to take advantage of the rebound.

It’s not about guessing trends, it’s about trading according to a predetermined system.

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