On July 23rd, the price of spot gold continued its ascent during early Asian trading on Thursday, with XAU/USD trading near $4,120, extending its recent rebound. The United States indicated it would respond to infrastructure if Iran took action against shipping in the Strait of Hormuz; Iran warned it would retaliate against US-related infrastructure and regional energy facilities if Washington escalated measures further.
The recent gold rally has been primarily fueled by safe-haven demand rather than a complete shift in fundamental trends. The escalating situation in the Middle East has refocused capital on gold's safe-haven appeal, pushing prices back above $4,100. However, simultaneously, heightened expectations for Federal Reserve interest rate hikes and the policy pressures stemming from rising energy costs may still cap gold's upside potential.
From a daily chart perspective, the short-term trend for gold is gradually improving, with the moving average structure beginning to repair itself and market bullish sentiment recovering somewhat. The MACD indicator shows bearish momentum weakening and bullish forces regaining strength, although the overall picture remains one of consolidation and potential trend reversal. On the 4-hour chart, short-term moving averages are forming upward support, and the RSI indicator has rebounded into a stronger zone, indicating increased buying interest. However, with the current price approaching previous resistance areas, the pace of gains may slow. Overall, the recommended trading approach for gold is to treat it as being in a wide-ranging consolidation phase.
Gold Trading Strategy:
Long Position Strategy: Consider buying on dips between 4092-4090, with a stop loss at 4069, targeting around 4122.
Short Position Strategy: Consider selling on rallies between 4137-4139, with a stop loss at 4161, targeting around 4100.
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