In the early morning, the financial market staged a stunning reversal. Trump's remarks about "not worrying about the depreciation of the dollar, allowing it to fluctuate like a yo-yo" directly triggered a flash crash in the dollar index. At the same time, traders are closely monitoring signals that the US and Japan may intervene in the foreign exchange market, further intensifying the pressure on the dollar. As a result of this dual stimulus, gold bulls unleashed their full force, breaking through the 5190 level, with the daily chart recording a substantial bullish candlestick.
Currently, the daily chart has formed a very strong pattern of seven consecutive bullish candles, and the moving average system is in a perfect bullish arrangement, making the bullish trend clear at a glance. Although technical indicators (such as RSI, etc.) have been in the overbought area for a long time and show signs of a top divergence, the current market is clearly dominated by the fundamentals. Before there is a substantial change in the core logic of a weak dollar, the upward trend of gold prices is difficult to reverse, and any pullback should be seen as a correction rather than a reversal.
Gold prices are strongly rising overall relying on the 5-day moving average, which is currently in the range of 5050-5040. This moving average is the lifeline for bulls. If this area is maintained, the strong momentum will continue. The short-term market shows a healthy 'step-like increase.'
The pressure zone before the early morning surge, between 5110-5100, has now converted into a key support area. It is essential to focus on the effectiveness of the top-bottom conversion here, which will determine whether the step-like increase can continue throughout the day. The first challenge will be the high point around 5200. If it can break through effectively, gold prices will launch an attack towards the 5237-5244 area.
Specific strategies for gold:
Gold is pulling back to the 5168-5175 line. Gold is retreating to add positions at 5150-5160, with a stop loss below 5140, targeting 5200, and breaking through to look at 5237-5244.
What traders fear the most is the 'carving a boat to seek a sword'. Waiting dead for 5100 will only miss a wave of the main upward trend. In a strong market, it is better to chase at the current price with a light position than to wait for a deep correction! Keep pace with the trend and follow the rhythm, and we will firmly catch this wave of dividends!