The adjustment has begun, seize the opportunityGold has remained in overbought territory for the past month. After four consecutive days of strong gains, investors have taken profits, and gold's safe-haven appeal has waned. US President Trump stated that a resolution to the Middle East conflict is "very close." Previously, Israeli and Hamas officials expressed cautious optimism about ongoing negotiations in Egypt, believing that the two-year Gaza conflict could end.
From a technical perspective, the RSI indicator has been in the overbought range. As mentioned before, the recent rise in gold was driven by news. When geopolitical tensions ease, gold will definitely adjust. Today's trend is in line with our expectations. At this stage, we only need to focus on the 4000 point support. If it falls below this position, the next support will be at 3977-3980.
Those who followed me in entering short positions below 4050 today have already taken profits on some of their positions near 4020, and will gradually take profits on the remaining positions near 4000.
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