Gold Continues Weak and Volatile Trading: Analysis and Strategy for Today

On June 4th, gold prices faced downward pressure near the 4500 level yesterday, with both highs and lows moving progressively lower. The session closed near its low at approximately 4426, resulting in a bearish daily candlestick. The technical picture shows the price being suppressed below the daily moving average band. Furthermore, the key monthly bullish trendline has been breached, indicating a continuation of the downtrend. The overall bias remains bearish, although attention should be paid to critical support levels. If the decline halts within the 4420-4400 zone, be cautious of a scenario where a second test of lows fails to break them, potentially triggering a structural rebound. Immediate daily resistance is seen at 4492, with the moving average band concentrated in the 4480-4495 area. As long as the price remains below this zone, the primary strategy should be selling.

From an hourly chart perspective, the market has been oscillating and breaking to new lows, though the moves have not been excessively large. The two waves of decline have now nearly reached the typical magnitude for a structural rebound, suggesting a corrective move could be imminent. The hourly chart shows signs of stabilization after the latest low was breached, and coupled with technical indicators, it suggests a potential bounce is forming. Short-term support is around 4433; a break below this level would likely lead to further declines towards the 4420-4400 area. On the upside, initial resistance is in the 4465-4470 zone, followed by the daily resistance levels mentioned. Overall, while the trend is bearish, prices are approaching key support, making a long position a viable initial approach.

Trading recommendations: Consider buying in the 4440-4435 area. If the price unexpectedly drops to around 4405, that also presents a buying opportunity. Place a stop-loss of 10 points. The target for the long trade is the 4460-4480 region. For selling, look to the 4480-4490 area. Specific entry points should be adjusted based on real-time market conditions.