After a significant drop on Friday, gold prices hit a low of **$3316** in the US market, indicating that the current market correction is likely to continue into next week.
### Current Market Dynamics
The short-term outlook for gold appears weaker, with the 4-hour cycle showing a decline and the daily cycle facing upward pressure. Despite this, the overall market remains within a broad trading range, mirroring the patterns observed in May.
The recent fall below the **$3330** support level is a key indicator. This point acted as a pivot between bullish and bearish sentiment, and its breach suggests that the short-term market has entered a period of weakness and volatility. However, the market hasn't fully shifted into a bearish trend. We can expect a continued downward fluctuation, but the extent of this drop should be limited, making a sharp decline unlikely.
### Trading Strategy for the Coming Week
Given these dynamics, a "short-term selling and long-term buying" strategy is recommended.
* **Short-term operations** may involve selling, but this should be approached cautiously.
* From a broader perspective, **buying remains the primary strategy**.
Looking ahead to next week, we anticipate the market will fluctuate and find a bottom around **$3300**. Once this support level stabilizes, a new upward trend is expected to begin.
**Key price levels to watch:**
* **Short-term resistance:** $3340
* **Lower support:** $3300
Flexibility in your trading arrangements will be crucial to capitalize on upcoming market opportunities.
### Current Market Dynamics
The short-term outlook for gold appears weaker, with the 4-hour cycle showing a decline and the daily cycle facing upward pressure. Despite this, the overall market remains within a broad trading range, mirroring the patterns observed in May.
The recent fall below the **$3330** support level is a key indicator. This point acted as a pivot between bullish and bearish sentiment, and its breach suggests that the short-term market has entered a period of weakness and volatility. However, the market hasn't fully shifted into a bearish trend. We can expect a continued downward fluctuation, but the extent of this drop should be limited, making a sharp decline unlikely.
### Trading Strategy for the Coming Week
Given these dynamics, a "short-term selling and long-term buying" strategy is recommended.
* **Short-term operations** may involve selling, but this should be approached cautiously.
* From a broader perspective, **buying remains the primary strategy**.
Looking ahead to next week, we anticipate the market will fluctuate and find a bottom around **$3300**. Once this support level stabilizes, a new upward trend is expected to begin.
**Key price levels to watch:**
* **Short-term resistance:** $3340
* **Lower support:** $3300
Flexibility in your trading arrangements will be crucial to capitalize on upcoming market opportunities.
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.
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.