10.16 Spot Gold (XAU/USD) Morning Outlook
Gold staged a strong rebound yesterday, in line with expectations based on the price action. After holding steady above the 4100 level in the morning session, it continued to climb and hit fresh highs. The daily candle closed bullish, with upward momentum recovering.
From a daily-chart perspective, there is still potential for further gains today. Gold pulled back by nearly $20 from around 4177 in the morning session, making 4150 the key intraday pivot between bulls and bears.
If the price holds above 4150 on a pullback, the outlook remains bullish, and buying on dips is preferred.
If it stabilizes above 4150, it may break yesterday’s high of 4177, with further targets at this week’s high of 4217 and the nonfarm high of 4225.
Only a sustained move above 4225 would confirm that this correction is over and a new upward move has begun. Until then, the market is considered range-bound. If resistance holds at higher levels, traders may look for short-term opportunities to trade a pullback.
Trading strategy
Go long on a pullback into the 4125–4140 range, targeting 4160, 4180, and 4200. Manage position size and risk carefully. #xau
Gold staged a strong rebound yesterday, in line with expectations based on the price action. After holding steady above the 4100 level in the morning session, it continued to climb and hit fresh highs. The daily candle closed bullish, with upward momentum recovering.
From a daily-chart perspective, there is still potential for further gains today. Gold pulled back by nearly $20 from around 4177 in the morning session, making 4150 the key intraday pivot between bulls and bears.
If the price holds above 4150 on a pullback, the outlook remains bullish, and buying on dips is preferred.
If it stabilizes above 4150, it may break yesterday’s high of 4177, with further targets at this week’s high of 4217 and the nonfarm high of 4225.
Only a sustained move above 4225 would confirm that this correction is over and a new upward move has begun. Until then, the market is considered range-bound. If resistance holds at higher levels, traders may look for short-term opportunities to trade a pullback.
Trading strategy
Go long on a pullback into the 4125–4140 range, targeting 4160, 4180, and 4200. Manage position size and risk carefully. #xau