Gold Market Analysis:
The gold market is constantly full of surprises. The violent rally at the end of last week took the market by surprise. There’s no need to speculate on the cause. The sheer force and magnitude of the rally alone demonstrates a reversal of the previous weakness. This analysis uses the trajectory we’ve previously observed to predict the direction. Friday’s large bullish candlestick on the daily chart wiped out the entire week’s gains, leading to a bullish weekly close. This is a clear short-term buy signal. The daily chart suggests there’s still potential for further gains. We’ll look for opportunities to buy after a pullback. The daily moving averages have been re-aligned, suggesting further upward movement. However, it’s important to note that the daily and weekly gold charts have been rather erratic in recent months, fluctuating back and forth within a high range without a clear overarching direction. Friday’s rally hasn’t changed this pattern.
The hourly central axis supports near 3351, as does the pattern support. The previous daily 30-day moving average also supports near 3351. With multiple overlapping supports, today’s Asian session near 3351 presents a buying opportunity. If it doesn’t offer a direct upward move, watch for a breakout of the previous high before pursuing a follow-up trade. Selling during the Asian session is merely a small pullback, so we’re not considering it for now.
Support is 3340 and 3351, while resistance is 3378. The dividing line between strength and weakness is 3351.
Fundamental Analysis:
Today is a UK holiday, which has some impact on the European session. There are no major data or fundamentals to consider in this session, primarily focusing on regular data.
Trading Recommendations:
Gold: Buy near 3351, target 3378-3399
