Gold Price Analysis Major Pullback as Geopolitical Tensions Ease🔥 Gold Price Analysis: Major Pullback as Geopolitical Tensions Ease
Technical Analysis Overview:
Yesterday's sharp decline in gold prices suggests a temporary de-escalation in geopolitical tensions, particularly in terms of the ongoing conflicts and political uncertainties. The global situation seems to be calming down, which has had a significant impact on the market.
From a political and trade perspective, the current price trend seems to be rational, though nothing is set in stone. Key negotiations are still underway, and important agreements may still be signed. After the sharp fall, gold has found some recovery, especially as it returns to liquidity gaps to fill.
Current Viewpoint:
At this stage, I am still expecting a retracement in gold prices, which will present better selling opportunities. While yesterday’s outlook focused on selling, we successfully identified key levels for buying. Today, selling opportunities seem more favorable than buying.
We need a pullback to fill the FVG (Fair Value Gap) and yesterday’s gap, after which gold may undergo another significant adjustment. The political dynamics, along with potential delays in the Federal Reserve's interest rate cuts, could push gold back to $3000 per ounce. If this happens, the rise in gold prices would be easy to foresee.
Short-Term Strategy:
In the short term, we will continue following the market’s wave of corrections. Short positions may be more sustainable, and holding onto them could prove more beneficial in the current environment.
Key Levels to Watch:
Resistance Levels: 3264 – 3278 – 3307 – 3328
Support Levels: 3241 – 3207 – 3196 – 3172 – 3156
Buy Opportunities:
Scalp Buy Zone: 3196 – 3164
SL: 3190
TP: 3200 – 3204 – 3208 – 3212 – 3216 – 3220
Buy Zone: 3158 – 3156
SL: 3152
TP: 3162 – 3166 – 3170 – 3174 – 3178 – 3182 – 3190
Sell Opportunities:
Scalp Sell Zone: 3278 – 3280
SL: 3284
TP: 3274 – 3270 – 3266 – 3260 – 3250 – 3240
Sell Zone: 3328 – 3330
SL: 3334
TP: 3324 – 3320 – 3316 – 3312 – 3308 – 3300 – 3290 – 3280
Upcoming Key News:
In the US session, we are expecting the release of CPI data for this period. As this is a crucial data point for the month, traders should pay attention. Currently, there is not enough information to analyze the CPI in-depth, so I will update you on the developments at the end of the European session, as we head into the US market.
Important Notes:
Ensure that you manage risk effectively and stick to your TP/SL levels to safeguard your account. We are still in a volatile period, and as always, caution is key when navigating these types of market conditions.
Good Luck!
