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Gold prices (XAU/USD) achieved strong gains at the end of last week’s trading, in line with previous positive expectations. These expectations indicated that breaking the resistance level of 4800 could push prices towards 4870, which was indeed achieved with a high of 4891.
Technical Outlook – 4-Hour Timeframe:
In the short term, gold prices experienced some corrective selling pressure as they entered overbought territory, attempting to release the momentum. However, the price continues to trade above the 50-day simple moving average and remains stable above a corrective upward trend line, supporting a positive short-term outlook.
Likely Scenario:
As long as we do not see a clear break below the support levels of 4730 and, more importantly, 4720, the possibility of an upward rebound remains. A break above the 4830 resistance level could strengthen the positive momentum, pushing prices towards:
- 4870 as a primary target
Conversely, a return to and stabilization below the key support level of 4720 could reignite selling pressure on prices, with a potential target of:
- 4650 as an initial target
Caution: The risk level is high amid ongoing trade and geopolitical tensions, and all scenarios remain possible. Trading gold involves high risk and may not be suitable for all investors.
Risk Disclaimer: Trading CFDs involves risks, and therefore all scenarios may be plausible. The content above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.
| S1: 4720.00 | R1: 4873.00 |
| S2: 4650.00 | R2: 4960.00 |
| S3: 4560.00 | R3: 5030.00 |
