Gold’s demand as a safe-haven asset continues to grow, with support and resistance levels emerging

Gold’s demand as a safe-haven asset is increasing, and major support and resistance levels are important technical indicators.

Risk aversion in global markets has increased due to unexpected international events over the weekend. Although the situation is still limited to a narrow scope, Trump’s remarks have triggered political and market concerns in many countries, and investors are generally worried that geopolitical risks may expand. Against this background, gold, a traditional safe-haven asset, opened higher in early trading and continued to rise, reaching a maximum of around 4421, and then fell back slightly to around 4388, providing a second buying opportunity in early trading. Subsequently, buying pressure during the European session pushed gold prices higher, currently testing levels near 4439, indicating continued market demand for safe-haven assets.

Current market sentiment and underlying logic

The rise in gold prices is mainly due to two factors:

Geopolitical instability: Unpredictable international events and political rhetoric have heightened market concerns about escalating tensions, driving funds to move to safe-haven assets.

Market expectations for risk spread: While these events are currently isolated cases, statements and market reactions from multiple countries indicate that investors expect broader fluctuations, which increases gold’s appeal as a safe-haven instrument.

Main technical aspect tonight

Upside resistance: focus on the area near 4450. This area has been tested several times recently and represents an important psychological level. A break above this level could lead to further gains.

Bearish Support: Short-term support is located in the 4416-4412 area, which is formed by the previous high and has technical significance. Declines and stabilization can be viewed as opportunities to establish buy positions.

Trading strategies and risk management advice

The current market trend is sensitive and price fluctuations may intensify. Therefore, flexibility is an essential element in trading:

Day trading strategies:

You can open a short position at the 4425-4430 level, with a stop loss order at 4440 and a target of 4400.

Evening update:

Buying position: If the price falls to the support area 4412-4416 and stabilizes, it is recommended to open buying positions in batches, with stop loss orders set below 4400, with a target of 4440-4450.

Sell ​​position: If the price first touches the resistance level near 4450 and shows signs of stop loss, you can try to open a small sell position with the stop loss set above 4460 and the target is 4430-4420.

General Principle: The current price is at its highest level in the short term. It is not recommended to chase high prices excessively. The strategy is to buy when price falls to a key level and open a sell position as support at key resistance levels. Stop loss orders must be strictly adhered to on all trades to reduce the risk of a rapid retracement once the event subsides.

Key points to follow:

Event progress and statements from all parties

U.S. dollar index and U.S. Treasury yields

The impact of global stock market volatility on risk aversion

Risk warning: Geopolitical events tend to be highly volatile and unpredictable. We recommend smaller trading positions, strict risk management, and avoid over-reliance on one direction. The above analysis is based on the information currently available; if fundamental factors change significantly, the strategy should be adjusted accordingly.