8.5 Morning View on Spot Gold (XAU/USD)
This rebound in gold has already interrupted the prior downtrend momentum: the lows have continued to rise, and price has moved away from the previously weaker condition—however, it has not yet developed into a one-way reversal.
When price tested the prior high area, it met with selling pressure. A direct upside breakout faces resistance. At present, the market is in a retaliatory corrective rebound after a decline.
To extend further upward, price needs to effectively digest the pressure near 4100. If it fails to break higher, it will likely pull back to test the 4060 support to gauge the strength of follow-through.
Once the 4060 support is broken, this rebound would be considered over, and the market would return to range-bound consolidation.
Recommendation:
Go long on stabilization between 4060–4070, with targets at 4100 and 4120.
Sell/short on rejection while 4100–4090 holds resistance, with targets at 4060 and 4030.
This rebound in gold has already interrupted the prior downtrend momentum: the lows have continued to rise, and price has moved away from the previously weaker condition—however, it has not yet developed into a one-way reversal.
When price tested the prior high area, it met with selling pressure. A direct upside breakout faces resistance. At present, the market is in a retaliatory corrective rebound after a decline.
To extend further upward, price needs to effectively digest the pressure near 4100. If it fails to break higher, it will likely pull back to test the 4060 support to gauge the strength of follow-through.
Once the 4060 support is broken, this rebound would be considered over, and the market would return to range-bound consolidation.
Recommendation:
Go long on stabilization between 4060–4070, with targets at 4100 and 4120.
Sell/short on rejection while 4100–4090 holds resistance, with targets at 4060 and 4030.
