Our focus today: the $4,320 to $4,480 price range.

Hello everyone.

Q: What’s the latest news in the gold market today?

Answer: Gold prices continued their weak downward trend today, but buying support remained weak, and all small rebounds were suppressed by selling pressure.

The main reason remains that inflation concerns have overshadowed safe-haven demand, in addition to multiple negative factors.

Q: Is the situation in the Middle East still escalating?

A: Instead of improving, the situation in the Middle East continues to escalate. The key to determining future trends is identifying the relationship between oil prices and inflation.

Q: From a technical analysis perspective, what is the current market situation?

Answer: The current market situation can be summarized as “short-dominated, the bottom has not yet been formed, but a short-term correction is needed.”

Notably, the daily RSI has entered oversold territory for the first time since October 2023, indicating the possibility of a short-term technical rebound.

4-hour chart: Showing a gradual downward trend, the rebound highs gradually fall back and the lows continue to refresh.

Main price levels:

Support levels: $4320-4335, $4300 (psychological level), $4200, $3850 (if the price falls below $4200, the next target is $3850).

Resistance levels: $4450-4480, $4550-4570, $4600-4635.

Q: What specific trading strategies are available in today’s market?

A: At present, after large market fluctuations, we are in a relatively weak consolidation stage.

My trading advice is:

“Sell at the highs.

For short-term support levels, it is recommended to open a small buy position in anticipation of a price rebound and carefully control the position size. ”

As shown in the figure: The price of gold fluctuates in a triangle pattern:

Current major support level: $4,350

Current major resistance: $4,450

Trading should focus primarily on this range and follow a range trading strategy.

Q: What should we focus on next?

A: The rest of the week should focus on the following points:

Fed officials speak: Fed officials will speak on Wednesday and Thursday. Any statement about the direction of interest rates could cause market volatility. Friday’s core personal consumption expenditures (PCE) data: the Fed’s most anticipated inflation measure. This data will be a turning point this week and may determine the short-term trend.

If the PCE data is better than expected, gold prices may face further downward pressure; but if it is worse than expected, it may lead to a strong rebound from the oversold zone.

Latest developments in the Middle East: Saudi Arabia and the United Arab Emirates continue to suffer drone and missile attacks. If the conflict escalates, it could affect gold prices by affecting oil prices.

Summary:

1. Today’s focus is on the price range between $4,320 and $4,480.

2. Current strategy: short around $4,450, and consider the possibility of a rebound if it falls to $4,350.

3. Before the release of PCE data on Friday, the market may remain weak and volatile.

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