July 20: Gold jumps again after a gap—will today’s gold test the bottom again?

Yesterday, the friends who were trading spot gold / London gold given by the Japanese mainly carried out operations of selling the highs this week. This morning, the gold price gapped down and opened at $4001. As of today, this is not good news—the current gold price is trading around $3997.

From the news perspective, the conflict between Iran and the US continues, causing the Strait of Hormuz to close again. According to a message released by Iran, there were no ships passing through the Strait of Hormuz over the weekend. The market’s underlying logic remains unchanged: as long as the war continues and energy prices rise, inflation will rebound, which will in turn suppress gold’s upside.

From the technical perspective, on the four-hour chart, gold is being capped by the 20MA, and the moving average system is aligned bearishly. In addition, the rebound at the end of last Friday also repaired the KDJ oversold condition on the sub-indicator. On the main chart, the Bollinger Bands are opening downward, and gold is being blocked below the Bollinger middle band. Overall, gold is in a relatively weak bias.

Last Friday, we had made recommendations: if the rebound is strong enough, you could set up a short position near 4030. If you still have short positions, you can continue holding and watch. The stop-loss position can be adjusted slightly down to the breakeven level for a push-to-breakeven approach.

For today, aggressive traders can lightly chase shorts near 3997 at the current price. Conservative traders can wait patiently—if the gold price rebounds to around 4010, consider setting up a short position there, with a stop-loss above 4020. The first downside target is 3985, and the second target is 3970!

The above analysis is for reference only and does not constitute any investment advice. Financial markets are highly volatile, and investing involves risk—proceed with caution when entering the market. $XAUT #美军结束对伊朗新一轮打击 ‌