Gold experienced a volatile session on Thursday, first declining then rebounding. During the Asian session, prices fell under pressure, reaching a low of 4028 before finding support and bouncing back. In the European session, prices recovered to consolidate around 4100. During the U.S. session, prices briefly spiked above 4116 before retreating, once again failing to sustain a breakout above the previous high and subsequently falling under pressure. The overall market remains in a state of repeated tug-of-war, as we have consistently emphasized.
After gold stabilized and rebounded from its 4028 low on Thursday, we recommended establishing long positions near 4035, anticipating a recovery. These positions were closed upon reaching the 4080 level. Subsequently, we highlighted the resistance zone around 4116. After the U.S. session witnessed a false breakout above this level, prices began to falter, leading us to recommend short positions directly at 4110. The logic is clear: since this key high has been tested multiple times without a decisive breakout, a pullback was expected.
Today marks the final trading day of the month, and the monthly closing is imminent. The key point is that as long as the 4116 resistance level remains intact, the market is likely to continue its choppy, sideways trading pattern. Currently, gold is trading around the 4090 area, approaching the 4116/4120 resistance zone. As we have stated, the rally lacks follow-through, so a direct pullback is the immediate expectation. The short-term strategy is to use the resistance area for short positions around the 4116/4120 level, and then look for long opportunities near the 4028 support level, using yesterday's low as a defense.
For today's Asian or early European session, initiate short positions with a defense near the 4116/4120 area to first gauge the strength of the pullback. Watch for support at the 4060 and 4028 levels. The suggested approach is to short around the 4100 level with a stop loss at 4116, targeting a profit of over 30 points. Subsequently, if the price pulls back to the 4060 area and stabilizes, establish long positions with a stop loss near 4042, targeting a recovery back above the 4100 level.
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