XAUUSD BUYTechnical Analysis
Retreats Provide Opportunities Amidst Dip-Buying_1
On the 4-hour timeframe, the XAU/USD pair has been in a steady uptrend since the beginning of the year, trading within a narrow ascending channel. Recently, it has turned into a new steeper channel, which is in sharp contrast to the previous broad-based volatility pattern. This turn confirms the strength of the gold bull run, which is characterized by minor pullbacks that attract significant bottom-hunting activity, leading to rapid new highs. Although the short-term gains appear somewhat overdone, bullish sentiment remains strong, clearly dominating the market. The short squeeze has prompted significant short-covering, creating a “fear of missing out” atmosphere in the gold market, with new buyers constantly entering to capitalize on the upward momentum. Analyzing the trend, gold prices are approaching the psychological level of 3000, and given the alignment of market sentiment and capital, a quick achievement of this target cannot be ruled out in the near term. It is recommended to buy around 2900 during price pullbacks, with a target near 3000 and a stop loss below 2865.
Trading Recommendations
Trading Direction: Buy
