Gold Prices Open Lower Amid Continued Bearish Pressure, Analyst Recommends Selling on Rallies

Deep News04-29 18:02

On April 29, international spot gold opened with continued weakness. The previous day's decline has intensified technical selling pressure, which continues to weigh on the gold price. Although market reports suggest Iran is expected to soon submit a revised peace proposal, and former President Trump stated Iran wants the US to swiftly reopen the Strait of Hormuz, mutual dissatisfaction with each other's proposals makes a short-term agreement unlikely. Consequently, the market has yet to react significantly to these developments, leaving gold in a weak corrective phase.

Crude oil is currently trading above its middle Bollinger Band and short-term moving averages, with technical indicators turning stronger, suggesting a firm rebound. The US Dollar Index is oscillating around its 200-day moving average, but expectations favor a rebound. Overall, these conditions are likely to negatively impact the gold price. Therefore, the intraday trend for gold remains weak, and the strategy should prioritize selling on rallies.

Yesterday's short positions were executed precisely, entering at 4694 and exiting at 4668 for a 26-point gain. The essence of trading lies in maintaining discipline amidst volatility and capturing certainty within trends. Two short positions were successful yesterday morning, entering at 4687 and exiting at 4670, securing a 17-point profit. Specific entry and exit points for today's trades should be based on real-time guidance.

Preliminary intraday trading level ideas are for reference only; specific entry and exit points will be confirmed based on live account notifications.

Gold is facing multiple bearish factors, and ahead of the Federal Reserve's interest rate decision on Thursday, short-term price action may remain volatile under pressure. The recommended trading approach is to treat it with a range-bound mentality. Key resistance levels to watch include the breakout situation around the $4600 psychological level, followed by $4657 and $4700. On the downside, support can be monitored at $4554 and $4500.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment