Gold within a Bullish Flag / Buyers still in charge

Gold's general commentary: My mid-Week Target been met earlier than I expected Powell improved the safe-haven tone of Gold as Price-action strongly decreases all Hourly 4 chart’s Selling momentum near the Hourly 4 chart’s Support zone of #1,935.80 - #1,942.80. It was indeed bad news for Gold’s Sellers since #2,000.80 remained most viable Target for Buyers - in this kind of announcement, market speculators would surely push Gold upwards (according to the fractal) shortly with potential Higher High’s peak near #2.000.80 - #2.005.80 Trading very close to the current Price-action. If market closes above #2,000.80 local peak, Gold may pierce #2,027.80 per ounce maximum within #2-session horizon. The Volatility is still High however and Gold may look to set a new Support zone first (my rough estimate is around #1,970.80 - #1,980.80) before hitting #2,000.80 benchmark once again. The Long-term trend remains Bearish (as long as #2,000.80 on Daily chart is preserved / September #2 fractal similarities), but with Daily chart green on all of it’s periods, Gold has to make steeper fall and strong consolidation once Higher High’s peak is tested. Notice how, as discussed on previous reports, Bond Yields broke it’s Daily chart’s Support which was much needed for Gold in order to break first strong Resistance, current fractal worked well against Gold’s Sellers which were hoping for correction (Selling every High’s), but as I already announced, Selling Gold (High demand flee to safety asset) in times like these is very dangerous intention.


Technical analysis: Gold’s Price-action is performing well above both the Hourly 4 chart’s and Daily chart’s Support zones for the cycle. Buying direction of yesterday’s session was directly correlated with the downtrend on Bond Yields (# -4.34%) which found Sellers near the Intra-day Support and most likely Yields will close the Trading week in red, struggling to make Bullish comeback and Gold’s Daily chart’s healthy Technicals which preserved core uptrend values. If the Price-action gets rejected at #2,000.80 - #2,005.80 Resistance zone, then recovery pullback towards #1,980.80 and even #1,975.80 (under conditions where I will have more information with Monday’s session candle) is possible and cannot be ruled out. For now, with Daily chart still in Bullish territory and the Yields at its Lowest since April #6, #2020, I remain Bullish on both Gold’s Short-term. Notice that at the same time and manner, Bond Yields are on consecutive Selling spree aswell which Fundamentally has a diagonal correlation with Gold. The slightest uptrend continuation there, should add enormous Selling pressure on Gold. Yesterday’s U.S. session opening bell rebound near #2,000.80 psychological benchmark was quickly Sold back towards former Daily chart’s Resistance zone (now acting as a Support zone), pointing towards last week’s Engulfing Bearish candle, visible on Hourly 4 chart. Price-action remains within the cyclical upside and the next Higher High’s Upper zone is seen Trading within #2,020.80 - #2,027.80 if first Resistance zone gives away and according to my model, widely able to replicate the March #10 - March #15 Selling sequence where Gold dipped on more than #90 points on the aftermath (which I do expect as this may be the final Bullish sequence).


My position: Regarding both Hourly 4 and Daily chart, this is an undisputed Bullish trend and #1,952.80 barrier test dangers are now out of equation since Daily chart is pointing to #2,000.80 psychological benchmark test once again and as long as nearby Support is not invalidated, Buyers will re-appear and push for the Resistance test. As I am Highly satisfied with my Trading results, I will call it for the session and take an early weekend break without any orders, ready for next week's Trading opportunities.