Gold Risks Pulling Back Toward Lower Support Levels

Jul 9

📊 Market Overview:

Gold (XAU/USD) is currently trading around $4,070/oz after rebounding from the $4,055/oz support area. Selling pressure continues to dominate as the US Dollar remains strong and US Treasury yields stay elevated, reducing gold's appeal. However, ongoing geopolitical uncertainties continue to support safe-haven demand, helping prices hold above key support and keeping the market in a consolidation phase.

📉 Technical Analysis:

• Key Resistance:

4,090 – 4,100 USD/oz
4,115 – 4,125 USD/oz

• Nearest Support:

4,055 – 4,060 USD/oz
4,035 – 4,045 USD/oz

• EMA:
Price remains below the EMA 9 on the H1 chart, indicating that the short-term trend is still bearish, with rebounds viewed mainly as technical recoveries.

• Candlestick / Volume / Momentum:

Following the sharp decline, small-bodied candles with long upper and lower wicks indicate a tug-of-war between buyers and sellers.
Trading volume has decreased compared to the previous sell-off, suggesting selling pressure is easing, but buying momentum remains insufficient to confirm a reversal.
Short-term momentum is still weak. If price fails to break above 4,100 USD, another test of lower support levels is likely.

📌 Outlook:

Gold may continue to decline in the short term if the US Dollar remains strong and price fails to break above 4,100 USD/oz. On the other hand, holding above 4,055 USD could trigger a technical rebound before the next directional move is confirmed.

💡 Suggested Trading Strategy:

🔻 SELL XAU/USD: 4,088 – 4,092
🎯 TP: 40 / 80 / 200 / 300 pips
❌ SL: 4,098

🔺 BUY XAU/USD: 4,032 – 4,035
🎯 TP: 40 / 80 / 200 / 300 pips
❌ SL: 4,025

Jul 9

Trade active

Jul 9

Trade closed: target reached