Gold continued its powerful advance on July 3rd, building on positive macro drivers, with bullish momentum fully unleashed. The price opened at 4034 in the morning session, dipped slightly to find support around 4030, and then initiated a steady upward trajectory. During the US session, driven by significant employment data, gold accelerated its rally, hitting a daily high of 4143 before consolidating slightly and closing at 4123. The daily chart formed a large bullish candle with an upper shadow, indicating a strong closing structure and further confirming the short-term uptrend.
Current Market Analysis
Spot gold executed a textbook V-shaped recovery intraday, testing and finding support at a key level before concentrated buying at lows quickly erased recent losses. The large bullish daily candle signals a clear technical strengthening in the near term. On the daily chart, consecutive bullish closes have stabilized the price above short-term moving averages, with bullish momentum gradually recovering and the overall trend shifting from weak to strong. The 4-hour chart shows rising lows, with Bollinger Bands opening upwards and moving averages providing support. The MACD golden cross continues to expand, indicating a complete short-term bullish structure. The 4100 level has acted as a core short-term support, with buying interest emerging on each test, making a deep pullback unlikely in the near term. Immediate resistance is seen at 4195; a break above would open the path towards 4330. Overall, short-term momentum favors the bulls, and the strategy should focus on buying on dips, entering in batches around support levels.
Key Support and Trading Plan
The key support zone is between 4120 and 4140, where long positions can be established in batches, with a standard target range of 4180-4200. If the price effectively breaks and sustains above the short-term resistance at 4150, bullish momentum is likely to accelerate further, allowing for follow-up long positions targeting the stronger resistance zone of 4200-4230. Trading should primarily involve buying on dips near moving average support, avoiding blind chasing at highs, and aligning with the larger cycle's bullish rhythm for steady positioning.
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