Gold Analysis and Trading Strategy | October 17✅ 4-Hour Chart Analysis:
Gold has entered a clear correction phase after a prolonged rally, with a recent high near 4379.52 followed by a sharp drop to around 4215.
Currently, the price is trading above the Bollinger middle band (around 4111), while MA5, MA10, and MA20 are all turning downward — indicating that short-term bullish momentum is weakening.
The Bollinger Bands are beginning to narrow, suggesting that volatility is calming. As long as the price holds above MA20 (around 4110), the medium-term bullish structure remains intact.
In the short term, gold may continue to consolidate between 4210–4280. If it breaks below 4200, a further correction toward 4150–4170 is possible.
✅ 1-Hour Chart Analysis:
On the 1-hour timeframe, gold has shown a steady decline after peaking near 4379, confirming a short-term bearish shift.
MA5, MA10, and MA20 have formed a bearish crossover, and the Bollinger Bands are opening downward — indicating that bears currently dominate the market.
The price is hovering near the lower Bollinger Band (around 4210), suggesting a potential for a short-term rebound, but resistance lies at 4240–4250.
If the rebound fails to hold, gold is likely to remain in a weak consolidation range between 4200–4250.
🔴 Resistance Levels: 4240–4250 / 4280–4290 / 4320
🟢 Support Levels: 4200–4190 / 4170–4150
✅ Trading Strategy Reference:
🔰 If the price rebounds to 4240–4250 and faces resistance, consider light short positions.
🎯 Targets: 4210 / 4190
🔰 If gold retraces to the 4170–4190 zone and holds steady, consider entering long positions in batches.
🎯 Targets: 4230 / 4250
📊 Summary:
Gold has entered a high-level correction phase after an extended rally. The medium-term bullish trend is still valid, but momentum has slowed.
Traders are advised to control position size, stay flexible, and wait for clearer direction before making larger commitments.
