8.6XAU Evening Silk Road Analysis
Last night, ADP data came in far below expectations. Weak US employment lowered the rate-hike expectations, and gold violently broke out of its long-term consolidation range, launching a squeeze-driven long rally.
Geopolitical easing weighed on oil prices and inflation, indirectly supporting gold’s upward move. A strong bullish daily candle has confirmed near-term bullish momentum, but the indicators are severely overbought. During the Asian session, price has moved into high-level consolidation for correction and stabilization.
Don’t chase the rally during the day. Wait for a pullback to buy near the support above 4240 in line with the trend. 4200 is the bulls’ lifeline.
Recommended trade: Do a buy near 4260–4270. Target 4300–4320.
Going forward, keep a close watch on Friday’s Nonfarm Payrolls data throughout, as it will determine whether this round of gains can continue. Make sure risk control is handled properly.
Last night, ADP data came in far below expectations. Weak US employment lowered the rate-hike expectations, and gold violently broke out of its long-term consolidation range, launching a squeeze-driven long rally.
Geopolitical easing weighed on oil prices and inflation, indirectly supporting gold’s upward move. A strong bullish daily candle has confirmed near-term bullish momentum, but the indicators are severely overbought. During the Asian session, price has moved into high-level consolidation for correction and stabilization.
Don’t chase the rally during the day. Wait for a pullback to buy near the support above 4240 in line with the trend. 4200 is the bulls’ lifeline.
Recommended trade: Do a buy near 4260–4270. Target 4300–4320.
Going forward, keep a close watch on Friday’s Nonfarm Payrolls data throughout, as it will determine whether this round of gains can continue. Make sure risk control is handled properly.