On January 14, the pressure is simply unsustainable! The CME Group intervened again, frequently increasing margin requirements and even adjusting the calculation method for precious metal margins from a fixed amount to a percentage-based system. However, the adjustment for gold was not significant, and the price continued to hit new historical highs.
Yesterday, two long entry points were analyzed: one being the support level at 4575/78, and the other being the strong support at 4562. Due to the limited pullback during the Asian session, it was emphasized to go long directly around 4585, defending with a stop at 4575, rather than attempting to time the exact bottom. The primary concern was missing the entry point entirely if the bullish momentum started without participation, as regretting a missed opportunity afterwards is futile. The actual market price indeed provided a favorable level, as gold halted its decline at 4577 and then surged significantly, once again testing resistance above 4630. It was strongly advised not to gamble on a counter-trend correction and miss the primary bullish trend, emphasizing a strategy of only following the trend.
During the European session yesterday, gold halted its decline at 4577 and began to rise, precisely holding the 4575/78 support area that was emphasized. The price rose to a high of 4635 during the US session before pulling back, with the late session finding support around 4570. Today, the market opened with a slow, steady ascent, gradually reclaiming lost ground. The outlook remains unequivocally bullish; the direction is very clear, and the question remains where to enter long positions. With the current gold price quoted around 4620, expecting a pullback to the 4575 area for a long entry is unrealistic. Key support below is now focused on the psychological $4600 level. Active long positions should be considered around this area. Resistance above is watched at the previous high of 4635. The strategy is to avoid trying to pick a top and not to bet against the trend for a correction. If the European session breaks to new highs, a subsequent pullback and consolidation before the US session should be used as another opportunity to enter long positions, targeting a breakout above the historical high and an extension of the rally. Specific operational reference: Look for the first pullback above $4600 in the early afternoon to go long. After a break above 4635, use any subsequent pullback to enter long again.
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