Market morning summary

Overnight precious metals continued their strong rise and spot gold hit a fresh record high. After Friday’s weaker-than-expected US NFP, safe-haven demand pushed gold higher, with an intraday high of $3,599.94/oz and a close at $3,586.58/oz. This morning gold is trading in a narrow range around $3,589.00/oz. Silver remains in high-range consolidation.

Key factors

- Safe-haven support: Central bank buying and ongoing geopolitical uncertainty provide medium- to long-term bullish backing for gold.

- Monetary policy expectations: Soft US NFP has increased expectations for Fed policy easing, weighing on the dollar and Treasury yields and supporting gold.

- Technical breakout structure: Gold has repeatedly made record highs and the overall technical structure remains bullish, though short-term consolidation is likely.

Morning trading strategy guide

Gold (XAU/USD)

- Range: $3,571.00 – $3,600.00/oz

- Approach: Buy low and sell high within the range; trade quickly.

Breakout rules:

- If price breaks below $3,571.00, look for support at $3,561.00 and $3,551.00. Consider short positions with a stop loss at $3,576.00.

- If price breaks above $3,600.00, target $3,610.00 and $3,620.00. Consider long positions with a stop loss at $3,595.00.

Silver (XAG/USD)

- Range: $40.560 – $41.420

- Approach: Buy low and sell high within the range.

Breakout rules:

- If price breaks below $40.560, targets are $40.000 and $39.700. Consider short positions with a stop loss at $40.760.

- If price breaks above $41.420, targets are $41.800 and $42.300. Consider long positions with a stop loss at $41.220.

Risk warning

Markets can be unpredictable and losses may occur. This analysis is for reference only and does not constitute investment advice. Traders should manage position sizes, use stop losses, and make decisions based on their own risk tolerance.