Gold prices finally retreated from their highs last week. At the opening of the market last Monday, gold prices tested the resistance zone of 2950-55 twice, but failed to break through. In the absence of buying support at the high, a downward correction began. On Tuesday, a worse-than-expected consumer confidence index from the US failed to bring new upward momentum to the market, and gold prices turned around, and fell below the support trendline(1) that we mentioned last week. A new round of short-selling orders was triggered, sending prices toward the bottom of the range near 2880.
Before Trump met with Zelensky on Friday, the market continued to hope for a truce between Russia and Ukraine, and the U.S. dollar index rebounded from its lows, sending gold prices to a near one-month low of around 2,835 in the U.S. market on Friday. However, the not-so-happy meeting between Trump and Zelensky before the close of the market caused gold prices to rebound before the weekend. The week ended near 2865.
While risk sentiment may push gold prices higher this week as it continues to be driven by Trump's policies, it continues to expect a weaker market reaction to the news. Of course, we should pay attention to Friday's US employment data this week, and the market expects the outcome to be flat for the time being, and it is believed that gold prices will not change significantly until near the end of the week.
1-hour chart(above) > The rally has been in a sideways state since the first test of the high of 2942 in early February, and it was recommended to deploy short selling at the high two weeks ago. On the 1-hour chart, after falling below 2880 (2) last Thursday, the trend has been dominated by the bear. The downtrend trendline(3) can be used as a reference, to see if the the downtrend will accelerate. In the S-T, as long as the price stays below the key resistance at 2880 (4), the downtrend will continue. However, it is still critical to pay attention to the development of the geopolitical and tariff situation this week, and the breaking news will be an important factor in the failure of the technical trend.
Daily Chart(above) > Stemming from the uptrend at the end of 2024, gold prices have been moving upwards along the 10 days MA(6). The uptrend has officially been over as it finally went below the 10-day MA, and it is beginning to turn around. Before the close of trading on Friday, gold prices were still supported by buying below 2855 (5), and after a short-term rebound, they could grasp 2880 or short-sell along the 5 day MA. Until the bottoming rally signal appears, the target on the daily chart can be set around 2790.
P.To
Before Trump met with Zelensky on Friday, the market continued to hope for a truce between Russia and Ukraine, and the U.S. dollar index rebounded from its lows, sending gold prices to a near one-month low of around 2,835 in the U.S. market on Friday. However, the not-so-happy meeting between Trump and Zelensky before the close of the market caused gold prices to rebound before the weekend. The week ended near 2865.
While risk sentiment may push gold prices higher this week as it continues to be driven by Trump's policies, it continues to expect a weaker market reaction to the news. Of course, we should pay attention to Friday's US employment data this week, and the market expects the outcome to be flat for the time being, and it is believed that gold prices will not change significantly until near the end of the week.
1-hour chart(above) > The rally has been in a sideways state since the first test of the high of 2942 in early February, and it was recommended to deploy short selling at the high two weeks ago. On the 1-hour chart, after falling below 2880 (2) last Thursday, the trend has been dominated by the bear. The downtrend trendline(3) can be used as a reference, to see if the the downtrend will accelerate. In the S-T, as long as the price stays below the key resistance at 2880 (4), the downtrend will continue. However, it is still critical to pay attention to the development of the geopolitical and tariff situation this week, and the breaking news will be an important factor in the failure of the technical trend.
Daily Chart(above) > Stemming from the uptrend at the end of 2024, gold prices have been moving upwards along the 10 days MA(6). The uptrend has officially been over as it finally went below the 10-day MA, and it is beginning to turn around. Before the close of trading on Friday, gold prices were still supported by buying below 2855 (5), and after a short-term rebound, they could grasp 2880 or short-sell along the 5 day MA. Until the bottoming rally signal appears, the target on the daily chart can be set around 2790.
P.To
P. To @ 1uptick Analytics
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
P. To @ 1uptick Analytics
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.