Gold Prices Hit New High with Strong Bullish Sentiment

Peterson

Summary:

The fluctuation range during the day will be 2440-2500, and investors are advised to buy low and sell high.

BUY XAUUSD

Close Time

CLOSED

2440.00

Entry Price

2480.00

2430.00

4563.84 +54.18 +1.20%

100.0

Pips

Loss

2430.00

2429.63

Exit Price

2440.00

Entry Price

2480.00

Fundamentals

During the Asian session on Wednesday (July 17), spot gold fluctuated and is currently trading around 2473.

Yesterday, the gold prices surged, hitting a new historical high around 2470, which was mainly due to investors continuing to chase rate-cut trades, disregarding the better-than-expected U.S. June retail data. Additionally, Federal Reserve Chairman Powell's statement that regardless of the political agenda, the Fed stands ready to cut rates during rate cuts further fueled the rate cut trade sentiment to its peak. Traders are betting that the probability of the Fed's first rate cut in September will reach 100%. While acknowledging excessive optimism, this is the power of funds, with the bulls still dominating the trend. On the upside, it will test the resistance near the integer level of 2500. For those who did not participate at the beginning of the market, it is not advisable to chase the uptrend. It is best to exercise caution as bulls wait on the sidelines. Aggressive traders can consider buying on substantial pullbacks or going short with small positions near 2500.

Technical Analysis

Technically, an absolute bullish trend prevails in the 1D timeframe. Yesterday also saw a new high, breaking through 2450. Currently, the room above is difficult to predict. There seems to be resistance at 2500. Under the absolute bull market, it is important not to blindly go short. However, driven by emotions, the risk of chasing highs becomes greater and more susceptible to market fluctuations. In the 1D timeframe, the MACD golden cross occurred and widened, but there are clear signs of a possible bearish divergence. Following the bullish momentum from yesterday, there may be some easing within the day. Support levels to observe below are at 2440 and 2420. If there is no break in the pullback, you can go long with small positions.

Gold Prices Hit New High with Strong Bullish Sentiment_1

Trading Recommendations

Trading Direction: Buy

Entry Price: 2440

Target Price: 2480

Stop Loss: 2430

Support: 2440.000, 2420.000

Resistance: 2485.000, 2500.000

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