Last night gold saw an extremely strong one-way trend. Driven by the Fed minutes and fluctuations in US Treasury yields, the price of gold rose steadily from 4320 to 4527, with a daily swing of over 200 points, and the daily chart closed with a strong bullish candle.
Short-term indicators have entered extreme overbought conditions. After a series of big gains, profit-taking intentions have increased. The market also offers a relatively strong technical pullback space, and the risk of chasing longs at high levels is extremely high.
This round of upmove has been driven more by market sentiment. In the short term, bullish momentum is gradually weakening, and there is a possibility of a pullback and correction after a spike, with price potentially falling back to be repaired.
Trading recommendations:
On a rebound to the 4515–4530 range, consider placing sell orders in batches. Targets to start with are 4500, 4480, and 4460. A valid breakdown would open the way to below 4420.
Short-term indicators have entered extreme overbought conditions. After a series of big gains, profit-taking intentions have increased. The market also offers a relatively strong technical pullback space, and the risk of chasing longs at high levels is extremely high.
This round of upmove has been driven more by market sentiment. In the short term, bullish momentum is gradually weakening, and there is a possibility of a pullback and correction after a spike, with price potentially falling back to be repaired.
Trading recommendations:
On a rebound to the 4515–4530 range, consider placing sell orders in batches. Targets to start with are 4500, 4480, and 4460. A valid breakdown would open the way to below 4420.