Gold Price Analysis: Downtrend Reversal Continues, Bulls Regain Momentum

Deep News07-27 19:53

Gold: On July 27, the US-Iran military confrontation suddenly hit pause, causing ripples across global markets. International oil prices opened sharply lower on Monday (July 27), with WTI crude plunging over 6% to $83.10 per barrel at one point, cooling inflation concerns. Spot gold opened more than $40 higher, initially rising 1% to touch $4,096.63 per ounce, and is currently trading around $4,085 per ounce, up about 0.8%. Meanwhile, US stock index futures rallied across the board, with S&P 500 futures up 0.65% and Nasdaq futures up 1.2%. This chain reaction stems from the Trump administration's decision to "leave room for maneuver" in diplomatic negotiations and Iran's simultaneous suspension of retaliation. However, whether gold's brief rebound can be sustained depends on a genuine de-escalation in the Middle East, clarity on the Federal Reserve's policy path, and the market's repricing of inflation and interest rates.

From the current chart perspective, gold has shown a pattern of stabilizing at lows and oscillating stronger during the day, completing a dip-and-recovery move, with short-term bullish momentum gradually recovering. After a deep correction, the price found strong support at the $4,000 psychological level, exhausting bearish momentum, and continued buying at the bottom pushed the price to steadily reclaim the key $4,100 level. Technically, the long lower shadow candle signals a shift in momentum, with the center of gravity moving higher and a bullish bias. Key intraday support lies in the $4,070-$4,030 zone, with a solid bull defense line; short-term resistance is at $4,120-$4,180, and a break above this range is needed to open further upside room. In summary, today's strategy suggests buying on dips near $4,070, with a stop loss at $4,050, targeting $4,020, and if a breakout occurs, holding partially for a further target of $4,150.

Disclaimer: This content is for reference only and does not constitute investment advice. Investors should operate at their own risk.

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.

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