Fundamental Analysis

• The U.S. and Japanese stock markets surged, with the Dow Jones Industrial Average rising by 2,900 USD.
• USDJPY rebounded from 144 JPY and climbed into the 147 JPY range.
• Tariffs on Chinese imports were raised further, and China also imposed high tariffs on U.S. products.

XAUUSD Technical Analysis

Analyzing the daily chart of gold: Although the tariff war between the U.S. and China has intensified, additional tariffs on the rest of the world have been temporarily suspended. While risks have not been completely eliminated, the stock market, which had begun to price in the worst-case scenario, recovered sharply.

At the same time, funds flowed from cash into gold, causing gold prices to surge. After rebounding from the 52-day moving average, gold is currently hovering near 3,100 USD.

Since this is only a temporary suspension, not a complete removal, and tensions between the U.S. and China remain high, the outlook continues to be uncertain. However, the panic selling appears to have come to an end. Gold is likely to continue rising for a while, and a new all-time high is expected.

Day trading strategy (1 hour)

Looking at the 1-hour chart of gold, the short-term moving average has crossed above the medium- to long-term moving averages. There is a major resistance zone around 3,100 USD, and whether gold can break through this level is key. However, the price is expected to rise over time.

The strategy should be to buy on dips. Consider buying around 3,060 USD and taking profits near the recent high of 3,150 USD. Set a stop-loss below 3,050 USD.

Support/Resistance lines

Key support and resistance lines to consider:

• 3,167 USD – All-time high
• 3,106 USD – Key price level

Market Sentiment

XAUUSD Sell: 56% / Buy: 44%

Today’s important economic indicators

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