GOLD - A countertrend correction in an uncertain market

Mar 25

XAUUSD is testing the 4,600 level as part of a counter-trend correction; however, a short squeeze is bringing the market back to its senses. The market may test 4,500...

For traders, a negative backdrop is created by the numerous market manipulations carried out by both Trump and his opponents. Trump’s sharp statement at the start of the week ended in a retraction. However, rumors of possible negotiations are emerging. The market is reacting extremely sharply...
Risk appetite has returned: the dollar and yields are falling, oil is getting cheaper, giving gold a breather.
Holding factors: The details of the negotiations are unclear; there are no guarantees of progress.
The Pentagon is preparing to deploy thousands of troops from the elite 82nd Division to the Middle East.
The technical picture on the daily chart remains bearish. I expect a bounce from 4575 (4600) to retest 4500, where there may be a battle between market participants. A close below 4500 could lead to a decline to 4400

Resistance levels: 4575, 4600
Support levels: 4502, 4401, 4350

Overall, despite the pullback, the market looks weak, and I consider bullish sentiment premature. A short squeeze in the 4575–4600 resistance zone could trigger a sell-off toward 4500. 4500 is an important psychological level; a close below this support could trigger a continuation of the decline.

Best regards, R. Linda!

Mar 25

Trade active

Mar 26

Trade closed: target reached