8.21 Gold Evening Trading Ideas
After this wave of longs runs out, the gold price continues to surge higher. In the short term, the rate of increase is too fast and the indicators are already overbought.
The long-term logic still holds: rate-cut expectations, central banks around the world continuing to accumulate gold, and the high debt level of U.S. Treasuries weakening dollar credit.
However, right now the market has built up a large amount of profit-taking positions. Once it rises further, stop-profit and selling pressure will rush out. If it falls, there will be buy orders stepping in to hold up the price.
This is no longer a one-way trend where you can just go long with your eyes closed. It’s consolidation and washing within an ongoing up-move—after it shakes out impulsive positions, it will gather strength and push higher again.
In the evening, focus on remarks from Federal Reserve officials, as they may stir up the market at any time and amplify short-term volatility.
Resistance levels: 4580 4600 4620
Support levels: 4570 4520 4440
Plan: Pull back and look to enter long positions around 4541-4567. Targets are near 4590-4620.
$XAUT #Gold
After this wave of longs runs out, the gold price continues to surge higher. In the short term, the rate of increase is too fast and the indicators are already overbought.
The long-term logic still holds: rate-cut expectations, central banks around the world continuing to accumulate gold, and the high debt level of U.S. Treasuries weakening dollar credit.
However, right now the market has built up a large amount of profit-taking positions. Once it rises further, stop-profit and selling pressure will rush out. If it falls, there will be buy orders stepping in to hold up the price.
This is no longer a one-way trend where you can just go long with your eyes closed. It’s consolidation and washing within an ongoing up-move—after it shakes out impulsive positions, it will gather strength and push higher again.
In the evening, focus on remarks from Federal Reserve officials, as they may stir up the market at any time and amplify short-term volatility.
Resistance levels: 4580 4600 4620
Support levels: 4570 4520 4440
Plan: Pull back and look to enter long positions around 4541-4567. Targets are near 4590-4620.
$XAUT #Gold