Yesterday, gold prices plunged to the lowest level since last week. After reaching a new historical high of 2956 on Monday, gold dropped to 2888 during Tuesday’s U.S. session, marking a significant decline.
This week, the U.S. is set to release some key data, including durable goods orders, the revised Q4 GDP, and the Fed’s preferred inflation measure—the Core Personal Consumption Expenditures (PCE) Price Index.
Before these data are released, gold has already experienced a significant pullback. Honestly, I didn’t anticipate such a sharp move. My initial expectation was that the pullback would occur later in the week, around Thursday or Friday. However, since gold has decided to pull back early, I believe the 2956 level is likely the current high point.
In previous articles, I’ve repeatedly pointed out two critical levels for gold: 2955 and the trendline support at 2932-2936. As long as the pullback doesn’t break below the trendline support, gold still has a chance to push higher. If 2955 holds, there could still be an opportunity for gold to challenge 2970.
However, with gold breaking below the trendline support, it indicates that the market is now leaning towards a bearish trend.
From the 4-hour chart, it’s clear that gold has broken below the upper channel support line. If the price continues to decline, there’s a high probability it will test the support around the 2880-2890 range. A breakout below this zone would signal the onset of a true bearish market. Conversely, if gold reclaims the 2940 level, bullish momentum could resume.
There are not many trading opportunities today. Since the gold market is currently biased towards the short side, our opportunity today is to wait for the price to return to the high point and short at highs. The specific trading strategy is as follows:
2930:Sell
TP:2900
TP:2890
TP:2880
This week, the U.S. is set to release some key data, including durable goods orders, the revised Q4 GDP, and the Fed’s preferred inflation measure—the Core Personal Consumption Expenditures (PCE) Price Index.
Before these data are released, gold has already experienced a significant pullback. Honestly, I didn’t anticipate such a sharp move. My initial expectation was that the pullback would occur later in the week, around Thursday or Friday. However, since gold has decided to pull back early, I believe the 2956 level is likely the current high point.
In previous articles, I’ve repeatedly pointed out two critical levels for gold: 2955 and the trendline support at 2932-2936. As long as the pullback doesn’t break below the trendline support, gold still has a chance to push higher. If 2955 holds, there could still be an opportunity for gold to challenge 2970.
However, with gold breaking below the trendline support, it indicates that the market is now leaning towards a bearish trend.
From the 4-hour chart, it’s clear that gold has broken below the upper channel support line. If the price continues to decline, there’s a high probability it will test the support around the 2880-2890 range. A breakout below this zone would signal the onset of a true bearish market. Conversely, if gold reclaims the 2940 level, bullish momentum could resume.
There are not many trading opportunities today. Since the gold market is currently biased towards the short side, our opportunity today is to wait for the price to return to the high point and short at highs. The specific trading strategy is as follows:
2930:Sell
TP:2900
TP:2890
TP:2880
Trade active
The idea of a bearish bias in the gold market today was correct, with gold now falling again to around 2890. We now need to observe the support situation in the 2880-2890 range. If we hold here, I think there is a possibility of another rebound.Note
My judgment is correct. Gold did get support here and rebounded again.
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Disclaimer
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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.