7.13 Afternoon Outlook: Gold plunges and breaks down! 4100 level lost—where do long positions go from here?

In the early session, gold briefly surged to around 4120. The bulls seemed strong, but it was followed by a fierce selloff from the bears. The price then dropped sharply, breaking through the 4100 and 4070 levels in succession, with a low of 4043 so far. It is currently trading weakly around 4055, with an intraday drop of nearly $70. The longs were brutally liquidated.

Technical view: The daily chart has broken the key 4100 support, and the short-term trend has turned bearish. On the 10-minute chart, price has been moving lower along the moving averages. The rebound strength keeps weakening. The support below is expected in the 4040–4030 area, while overhead pressure is at 4070–4090.

Trading reference: Sell in batches on rebounds in the 4070–4090 range, targeting 4050 and 4020. $XAUT