Market morning summary
Spot gold fell back from its record high on Wednesday. The low was 3717.57 USD/oz and it closed at 3735.94 USD/oz. In early trading today, gold is moving in a narrow range around 3740.00 USD/oz as the market sees a technical adjustment after recent highs.
Key factors
- Technical pullback pressure: Some traders took profits after gold hit record highs, causing a technical correction.
- US dollar strength: A stronger dollar is weighing on precious metals.
- Mid- to long-term support remains: Fed policy expectations and geopolitical risks still support prices.
Early session trading guide
Gold (XAU/USD)
Range: 3717.00 – 3745.00 USD/oz
Approach: Sell near the top of the range and buy near the bottom, using light positions.
Breakout strategy:
• If price breaks below 3717.00, look for support at 3707.00 and 3697.00. Consider short positions with a stop loss at 3722.00.
• If price breaks above 3745.00, look for resistance at 3755.00 and 3765.00. Consider long positions with a stop loss at 3740.00.
Silver (XAG/USD)
Range: 43.650 – 43.980 USD/oz
Approach: Sell near the top of the range and buy near the bottom.
Breakout strategy:
• If price breaks below 43.650, target 43.300 and 42.800. Consider short positions with a stop loss at 43.850.
• If price breaks above 43.980, target 44.600 and 44.900. Consider long positions with a stop loss at 43.780.
Risk reminder
Trading carries unpredictable risks, including the loss of principal. This analysis is for reference only and does not constitute direct investment advice. Investors should make independent decisions based on their own risk tolerance.