Gold shows signs of bottoming out.

Commodity

Summary:

Escalating conflict in the Middle East and rising inflation and interest rate hike expectations continue to weigh on gold, but the support level of $4,000 remains unbreakable.

BUY XAUUSD

Close Time

CLOSED

3999.62

Entry Price

4350.00

3938.00

4045.55 -95.34 -2.30%

525.5

Pips

Profit

3938.00

4052.17

Exit Price

3999.62

Entry Price

4350.00

Fundamentals

The escalating conflict between the US and Iran has triggered a surge in oil prices, fueled inflation concerns and renewed expectations of a Federal Reserve rate hike, and pushed up the US dollar and US Treasury yields, putting significant pressure on gold.

Although gold faces significant headwinds in the short term, it still possesses long-term investment value. The traditional safe-haven demand due to geopolitical factors, the latest round of tariffs announced by the US government, and the risk of tariffs impacting the global economy, along with the need for asset diversification, continue to provide a solid foundation for gold's growth.

Technical aspects

Looking at the 4-hour chart, XAUUSD has turned downwards again after falling from above 4100. In the short term, it has not yet broken out of the range-bound trading pattern that has lasted for more than a month. However, the support at the 4000 level is clearly very strong, with several attempts to break through and then quickly recovering, seemingly gradually solidifying the bottom. The longer the consolidation lasts, the higher the probability of a bottom forming and the more stable the structure. As long as it does not fall below 4000, gold may still successfully form a bottom.

In terms of trading strategy, it is not advisable to be overly bearish. You can try to go long when the price retraces to the vicinity of the 4000 level and stabilizes, with a target of around 4350 and a stop loss below 3950.

Trading advice

Trading direction: Long

Entry slots: 4000

Target price: 3938

Stop-loss level: 4350

Downside support levels: 4000/3950

Upward resistance levels: 4160/4350

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