7.23 Thursday gold midday thoughts
As of July 23, spot gold is currently quoted at $4,125. After a night surge that touched the two-week high of $4,166, profit-taking came in heavily, putting pressure on price and causing it to fall back. During the day, overall price action has remained range-bound and consolidated between $4,100 and $4,166. Yesterday, after completing a technical rebound driven by geopolitical safe-haven demand and a weaker dollar, short-term long momentum quickly faded. The chart has entered a high-range consolidation phase, with clear tug-of-war between bulls and bears.
Technically, the key short-term strong resistance is locked at today’s high of $4,166. The more important medium-term pressure above lies at the $4,200 neckline area. Only by seeing a volume-backed hold above $4,166 can the prior weak downward structure be fully reversed and open up medium-term recovery and upside space. On the downside, short-term dynamic support is the $4,100 psychological level (the weekly MA5 moving average area). As long as this support is not effectively broken through by bears, the current oversold rebound structure can remain intact. The ultimate downside “lifeline” strong support is projected toward $4,070, the rebound start point. If price effectively breaks below it, this technical rebound will be considered over, and gold is likely to return to the downward channel to test the $4,000 level.
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