Gold Technical Analysis: What to do today after the ups and downs?

On Thursday, global gold prices extended the decline that began on Wednesday, showing signs of reversal. However, don’t jump to conclusions as the U.S. dollar index and oil prices remain below their medium-term moving averages, suggesting sellers are not yet in control, which provides some support for gold prices. 💡

Fundamental Analysis: Raising interest rates is not that simple

Minutes of the Federal Reserve’s March meeting showed that some officials tended to hint at the possibility of raising interest rates. However, we must remain calm: current inflation is driven more by oil prices than by economic overheating. In other words, rising inflation may be accompanied by the risk of stagflation, or even the risk of a subsequent decline. 📉

Therefore, even if short-term interest rate cut expectations decline, interest rate hikes are not inevitable. As for geopolitical tensions, it’s ultimately just a matter of time. In the short term, rising energy prices and inflation expectations, coupled with tight liquidity, have led to a sell-off in liquid assets such as gold and silver. After these feelings subside, the market usually returns to equilibrium. 🧠

Technical analysis: No significant decline is expected above $4,700! 👀 Gold prices first rose and then fell throughout the day on Wednesday, falling from US$4,840 to US$4,698, a significant drop. However, I would like to remind everyone that above $4,700, I do not recommend being too pessimistic. The reason is simple: this decline was driven by news and liquidity scarcity, not capital outflows from the market. 📉

Judging from the daily chart, yesterday’s closing showed a standard cross star shape, located near the middle line of the Bollinger Bands indicator. This means that the direction of the candles in the next two trading days is decisive:

Upside potential: A test of the $4860 level; Downside potential: The price drops to the previous low of $4,550.

Judging from the four-hour chart, the price has fallen to near the midline of the Bollinger Bands indicator, with obvious support at the $4,700 level. I personally expect a rebound to over $4,700 today. If prices stabilize and rise during the Asian and European trading hours, the first target is $4,760, with momentum reaching $4,800. If the price unexpectedly falls below $4,700, watch for support in the $4,650-4,630 area. 📊

day trading strategies

✅ Recommendation: Buy in the $4720-4730 area.

🛡️Stop loss: below $4,700

🎯Target: Initial target is the $4780-4800 area.

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