Gold technical analysis: it rose first and then fell, continuing to consolidate. High resistance levels remain the main focus.

On Thursday (April 16), spot gold prices rose slightly, trading around $4,820 per ounce, an increase of about 0.6%. Continued weakness in the U.S. dollar provided support to gold prices. On the previous trading day, the price of gold briefly touched a one-month high of US$4,871, and then quickly fell back to close at around US$4,790, a decrease of nearly 1%.

Fundamentally, geopolitical tensions are showing signs of easing, but uncertainty in energy supply chains remains. The Strait of Hormuz remains closed and oil prices continue to fluctuate at high levels. At the same time, market expectations for monetary policy have changed, and the situation of high interest rates may last longer. Gold is facing the dual pressure of falling safe-haven premiums and rising short-term holding costs, and is entering a consolidation phase.

technical analysis
Daily chart: Yesterday, gold prices briefly broke through the $4857-4871 area, then pulled back and closed as a medium-sized bearish candle with a long upper shadow, which is a typical rebound consolidation signal. Judging from the daily chart, there is still the possibility of further decline today. However, the price of gold rose by about US$40 after the opening, and the momentum is relatively strong. It can currently be regarded as a consolidation stage in the upward trend. The next two days are crucial; if buyers are able to move above yesterday’s highs, the uptrend is likely to continue; conversely, if they fail to do so, a downward correction is likely to persist.

Four-hour chart: Gold prices are still in a slight rebound stage. The previous low of $4,644 has yet to be broken, limiting downside potential for now. The weakness of the US dollar also limits the short-term correction space to a certain extent, leading to an overall consolidation pattern. The main focus above is the resistance area. Watch for possible pullbacks after big gains.

Trading strategy reference: The short-term strategy is temporarily adjusted to sell on highs, and maintain a counter-trend strategy under generally bullish conditions.

Short selling strategy: sell in batches near $4840-4850, with stop loss set above $4870. The targets are $4,800, $4,750 and, if the price falls below this level, a further drop to $4,700.

Buying strategy: Buy in batches around $4740-4750, stop loss below $4720. The target is $4790-4810, if the price falls below this target, it will fall further to $4830.

Overall analysis: Gold is currently in a sensitive period of geopolitical easing and changes in policy expectations. In the short term, the $4840-4850 area is the main resistance area, while the $4750-4730 area is an important support area. It is recommended to carefully manage the position size and place stop-loss orders accurately to avoid holding losing positions.

The market is constantly changing; the above strategies are for reference only. Welcome to like and follow for more real-time market analysis and discussion.

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