Last week, the U.S. Dollar Index strengthened, leading to gold’s first weekly decline after eight consecutive weeks of gains. The primary drivers were U.S. tariff policies and related statements, along with profit-taking. As a result, gold fell from a high of 2956 to a low of 2832, recording a $120 drop within the week.
In previous articles, I had warned in advance that 2956 could be a potential short-term peak, signaling the risk of a trend reversal. As expected, gold experienced a sustained decline, allowing us to profit from multiple short positions.
There is no doubt that gold remains in a bearish trend. However, we should not oversimplify the market by assuming a continuous decline without any rebounds. A key factor to consider is the geopolitical backdrop—following U.S.-Russia negotiations, no new progress has been made. Instead, last Friday, a public dispute between the Ukrainian president and U.S. officials unfolded in front of the media, with the planned U.S.-Ukraine mineral agreement failing to materialize. This has reignited risk aversion, triggering a rebound in gold prices.
From the 1-hour chart, we can see that gold found support twice around 2890 during its previous decline. Once 2890 was breached, the support level turned into resistance. Given this, I anticipate that gold’s rebound will likely test the 2890 level.
For today’s trade, I believe entering short positions around 2890 is a favorable setup. As long as gold fails to establish a foothold above 2890, we can initiate short positions. If it breaks above and stabilizes above 2890, we will reassess our strategy accordingly.
In addition, today’s US ISM manufacturing PMI data for February is the most important data today, and we need to pay special attention to it then.
In previous articles, I had warned in advance that 2956 could be a potential short-term peak, signaling the risk of a trend reversal. As expected, gold experienced a sustained decline, allowing us to profit from multiple short positions.
There is no doubt that gold remains in a bearish trend. However, we should not oversimplify the market by assuming a continuous decline without any rebounds. A key factor to consider is the geopolitical backdrop—following U.S.-Russia negotiations, no new progress has been made. Instead, last Friday, a public dispute between the Ukrainian president and U.S. officials unfolded in front of the media, with the planned U.S.-Ukraine mineral agreement failing to materialize. This has reignited risk aversion, triggering a rebound in gold prices.
From the 1-hour chart, we can see that gold found support twice around 2890 during its previous decline. Once 2890 was breached, the support level turned into resistance. Given this, I anticipate that gold’s rebound will likely test the 2890 level.
For today’s trade, I believe entering short positions around 2890 is a favorable setup. As long as gold fails to establish a foothold above 2890, we can initiate short positions. If it breaks above and stabilizes above 2890, we will reassess our strategy accordingly.
In addition, today’s US ISM manufacturing PMI data for February is the most important data today, and we need to pay special attention to it then.
Trade active
As I predicted, driven by risk aversion, gold will rebound and touch the resistance level of 2890, and now gold has touched this level.
You can see that the order I bought when the article was published has successfully touched TP: 2890. Now as long as I observe that 2890 cannot stand firm, I will sell it.
Note
There is indeed strong resistance at 2890. The gold price has stayed here for 3 hours. Now we are just waiting for the price to fall.Note
The decline begins and our short position starts to gain profit
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
If you don’t know where to start trading, you can join the channel and get accurate trading signals
👊Join the free Telegram group:
t.me/Reliable_Trading0
🏆Contact me to copy trading:
t.me/Reliable_Trading1
👊Join the free Telegram group:
t.me/Reliable_Trading0
🏆Contact me to copy trading:
t.me/Reliable_Trading1
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.