On August 5, gold surged over 100 points in the Asian session. Tonight, watch for a pullback before the advance toward 4,200 resumes.
Gold prices continued last night’s rally in early trading today, briefly breaking above the 4,120 resistance level and rising to around $4,179 before the European session in the afternoon. The price then pulled back slightly during the European session and is currently quoted near 4,150. The overall trend today is strong.
On the hourly chart, MACD did form a bearish divergence when gold broke through the 4,120 resistance level this morning. However, after gold’s strong rally, the divergence was forcibly corrected. As gold continued to rise, various indicators were pushed toward their short-term limits. After the price pulled back from the $4,179 high, MACD remained in an expanding-volume pattern, showing a clear volume-price divergence, while all three KDJ lines were in oversold territory. Overall, tonight’s market needs a pullback to correct the divergence.
Tonight, focus on the 4,120–4,100 area below, where resistance has turned into support. If gold pulls back to this range and stabilizes, I personally suggest positioning for “sadness,” with an upside target of 4,200!
In addition, pay attention tonight to the July ADP employment data. The current market forecast is for only 70k jobs this time. I personally believe that the July employment data will also be unimpressive. The US-Iran conflict erupted again in July, energy prices rose, and inflation remained elevated. I believe tonight’s data will be bullish for gold and crude oil.
The above analysis is for reference only and does not constitute any investment advice. Financial markets are highly volatile, and investing involves risks. Please exercise caution when entering the market. $XAUUSD
Gold prices continued last night’s rally in early trading today, briefly breaking above the 4,120 resistance level and rising to around $4,179 before the European session in the afternoon. The price then pulled back slightly during the European session and is currently quoted near 4,150. The overall trend today is strong.
On the hourly chart, MACD did form a bearish divergence when gold broke through the 4,120 resistance level this morning. However, after gold’s strong rally, the divergence was forcibly corrected. As gold continued to rise, various indicators were pushed toward their short-term limits. After the price pulled back from the $4,179 high, MACD remained in an expanding-volume pattern, showing a clear volume-price divergence, while all three KDJ lines were in oversold territory. Overall, tonight’s market needs a pullback to correct the divergence.
Tonight, focus on the 4,120–4,100 area below, where resistance has turned into support. If gold pulls back to this range and stabilizes, I personally suggest positioning for “sadness,” with an upside target of 4,200!
In addition, pay attention tonight to the July ADP employment data. The current market forecast is for only 70k jobs this time. I personally believe that the July employment data will also be unimpressive. The US-Iran conflict erupted again in July, energy prices rose, and inflation remained elevated. I believe tonight’s data will be bullish for gold and crude oil.
The above analysis is for reference only and does not constitute any investment advice. Financial markets are highly volatile, and investing involves risks. Please exercise caution when entering the market. $XAUUSD
