Fundamental Analysis

  • Gold declined to around $4,000 after forming a double top and is now in a consolidation phase. On the daily chart, strong upper wicks and a strong USD suggest limited upside unless it breaks above $4,760. ADX indicates weak trend strength. On the 4-hour chart, a triangle pattern is forming with higher lows, and a breakout above $4,730 or below $4,175 will determine the next direction.

Today’s Video

https://youtu.be/472jwzVcQbo

Is Gold Reversing?

Gold is currently trading around $4,550. After forming a double top, it declined to around $4,000, and the corrective move appears to have paused. While the strength of the US dollar is notable in the market, the medium- to long-term outlook for gold remains bullish.

However, looking at the daily chart, prominent upper wicks suggest that dollar buying pressure is still dominant. Unless gold surpasses $4,760, it is unlikely to enter a full-fledged uptrend. The ADX is also below 30, indicating a lack of clear direction.

If gold fails around $4,700, there is a possibility of another drop to new lows, with $4,150 seen as a potential downside target.

[Gold / Daily Chart]

Higher Lows Suggest Trend Continuation
 On the 4-hour chart, higher lows are forming, creating a triangle pattern. If this is a consolidation triangle, it suggests a continuation of the trend. The key level to watch is whether price can break above $4,730.

The RSI is around 50, indicating conditions where selling pressure on rebounds may increase.

A break above $4,730 or a close below $4,175 could serve as entry signals. For now, it may be best to stay on the sidelines.

[Gold / 1-Hour Chart]