XAUUSD – Will ATH Diminish Gold's Value?

Hello Traders,

Gold once accounted for up to 21% of total global assets, but now this figure is only about 5%. Two perspectives are clearly visible:

Gold is gradually losing its relative importance in the financial system.

The total value of global assets has increased significantly (the denominator has expanded), causing gold's proportion to decrease, while the absolute value of gold still plays an important role.

Technical Analysis

In today's Asian session, gold continues to set higher price levels, indicating a very strong upward momentum.

The upward price channel on H1 has touched the upper boundary, showing slight hesitation, but the main trend remains bullish.

The H1 and H4 frames maintain strong buying pressure, with market sentiment heavily leaning towards buyers, ready to push prices to higher levels.

According to Elliott Wave, the price is currently in wave 5 (market sentiment wave). The current task is to observe the reaction when this wave completes, to prepare for the ABC correction cycle.

Regarding Fibonacci, the next important resistance area is at 3880, where a bearish reaction is likely to occur.

Trading Scenario

Sell (at Fibo resistance 3880):
Entry: 3880
SL: 3886
TP: 3866 – 3850 – 3835

Buy (trend-following preferred):
Entry: 3813 – 3816
SL: 3809
TP: 3828 – 3843 – 3860 – 3878

👉 Note: Smaller frames H1 – M15 will provide additional confirmation signals to optimize entry points.

Conclusion

The bullish trend of gold is still prioritized, wave 5 is not yet complete, and the scenario aiming for 4000 – 4050 is entirely feasible.

Short-term selling at strong resistance areas can be considered, but risk management must be tight.

Traders need to closely follow support – resistance areas in smaller frames to maximize profits.

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