Gold Price Analysis — XAU/USD (Daily)Overview:
Gold has staged an impressive rally, climbing from the 3,200–3,300 area to the 3,870 region within a strong bullish structure. Price action shows higher highs and higher lows, signaling continued demand from buyers. 🚀
Technical Outlook:
• Trend: Both the medium- and long-term trends remain bullish, with price above the 50-day and 200-day moving averages.
• Momentum: Strong upward momentum confirmed by MACD histogram expansion and RSI hovering near overbought territory (~70).
• Key Levels:
⚠️ Resistance: ~3,900 (psychological & structural level).
✅ Support: 3,400–3,600 zone.
Trading Scenarios:
1️⃣ Bullish Continuation:
• Enter on pullbacks to support (3,600–3,700).
• Targets: 3,950–4,000.
• Use trailing stop to secure profits.
2️⃣ Rejection at Resistance (~3,900):
• Look for bearish candlestick patterns (pin bar, engulfing).
• Short-term correction toward 3,400–3,200.
• Stop-loss above 3,920 to manage risk.
3️⃣ Breakout Play:
• If price closes above 3,900 decisively with volume, expect continuation toward 4,100+.
• Ideal for breakout traders with risk managed via tight SL below breakout candle.
Risk Management:
⚠️ Do not risk more than 1–2% per trade.
✅ Use trailing stops to lock in gains.
💡 Accept losing trades early; capital preservation is priority.
Conclusion:
🎯 Bias remains bullish while above 3,600. Traders should monitor the 3,900 level closely — a breakout could extend the rally, while rejection could trigger a corrective pullback.
