July 21: Choppy consolidation, gold remains weak

At yesterday’s open, gold gapped down and opened lower. After a small pullback in the early session, it quickly moved upward, sustaining the advance until before the US session. Before the US session, the price surged to a high of $4,040, but then bullish momentum proved insufficient and gold fell back to around $4,010 during the US session. Overall, the market is in a phase of choppy consolidation and adjustment.

Although yesterday’s gold did not break out in a clear direction, the indicators do show a choppy repair pattern. On the daily timeframe, gold last Friday probed $3,959 and then closed green, while yesterday it formed a doji. In addition, the moving-average structure remains bearish and continues running downward. It is not ruled out that the price will come under pressure and that the decline along the 5MA will continue.

Looking at the four-hour timeframe, the Bollinger Bands are opening downward, and gold is trading below the middle band. The moving-average system is aligned bearishly. Gold rebounded to the 30MA yesterday, then turned down. The KDJ three lines are running downward after a dead cross, and overall the market is bearish.

From a personal view during the day, the bias continues to lean bearish. For trading, it is recommended to focus on selling on rebounds. Watch the key resistance band at $4,020—$4,040. If during the day gold can effectively break below $4,000, it is very likely to accelerate downward again and retest the $3,960 support.

Trading suggestion: Set up short positions on the $4,020—$4,040 rebound range, aiming for $4,000; if it breaks through, first look at $3,960!

The analysis above is for reference only and does not constitute any investment advice. Financial markets are volatile, and investing involves risk—proceed with caution when entering the market. $XAUUSD ‌