Fundamental Analysis

• The U.S. reportedly grants Ukraine permission to use long-range missiles within Russian territory.
• Gold sees dip buying, reacting to Fibonacci retracement and trendlines.

XAUUSD Technical Analysis

Analyzing the daily chart for gold: Gold has declined to approximately 2,535 USD, aligning with the 50% Fibonacci retracement level, after falling over 200 USD from its peak. The post-presidential election profit-taking appears to have subsided.

With support from the 50% Fibonacci retracement and overlapping trendlines, gold has rebounded from 2,535 USD to around 2,610 USD. Despite the ongoing strength of the USD, it has exceeded the 38.2% retracement, potentially rising further to the 23.6% level near 2,670 USD.

Fundamentally, reports of U.S. approval for Ukraine’s use of long-range missiles within Russian territory may have bolstered gold as a safe-haven asset.

Day trading strategy (1 hour)

Analyzing the 1-hour chart for gold: Gold saw significant selling around 2,635 USD, followed by a strong rebound. It is climbing along the +2σ line of the Bollinger Bands, suggesting a possible target of 2,675 USD if it surpasses 2,625 USD.

The focus is on whether gold can break through resistance levels at 2,615 USD and 2,627 USD.

For a day trading strategy, consider entering new buy positions. If gold falls near 2,600 USD, actively buying on dips could be favorable. Set a profit target near the recent monthly resistance at 2,635 USD, with a stop below 2,598 USD.

Support/Resistance lines

Key support and resistance lines to consider:

• 2,536 USD: Recent low

Market Sentiment

XAUUSD Sell: 50% / Buy: 50%

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*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.