Will gold break through 2700 on Friday?

4 天前

Gold market analysis:
In the Asian session on Friday, gold quickly rose after opening, breaking through the key technical level of 2690 and forming a head and shoulders bottom pattern, showing the possibility of further rise. So far, the gold price has reached 2694 as high as possible. If nothing unexpected happens, it is expected that the weekly line this week will form a big positive line. From a technical point of view, the upward momentum of gold is still strong. Moreover, as the situation between Russia and Ukraine continues to ferment, market uncertainty has intensified, and the demand for gold as a safe-haven asset has also increased, which has provided continuous impetus for the rise of gold. Therefore, in today's operation, we can still maintain the idea of ​​backing back to buy.

Background factors of gold rise
The recent rise in gold prices is obviously closely related to geopolitical tensions. The conflict between Russia and Ukraine has not been effectively curbed. On the contrary, as the situation escalates, the market's uncertainty about the global economy is also increasing. In this case, investors tend to turn to safe-haven assets such as gold to hedge potential market risks. From historical experience, geopolitical risks tend to push up gold prices in the short term, and the current situation between Russia and Ukraine remains one of the main focuses of the market. The safe-haven demand for gold has therefore been further enhanced.

In addition, as the global central bank continues to raise interest rates, the trend of the US dollar has become one of the important factors affecting the price of gold. Although the US dollar remains strong, gold can still occupy a place in the global market due to geopolitical uncertainties. The current momentum of gold's rise is closely related to the intensification of the situation between Russia and Ukraine, and this factor may continue to support the rise of gold for some time to come.

Technical analysis
From the current 4-hour chart of gold, gold has broken through the important technical level of 2690, forming a head and shoulders bottom pattern, which usually means that gold has a strong potential for growth. At present, the price of gold has touched the 2694 line. If it continues to break through the 2700-2705 pressure range, gold is expected to rise further, or even break through higher levels, and the target may point to around 2750.

Upper pressure level: 2700-2705
The short-term resistance level of gold is in the 2700-2705 range, which is a key technical range that has failed to break through many times. After breaking through this area, gold is expected to rise further, and the short-term target may point to the 2750 line. If gold can break through and stabilize in this area, it may attract more investors to follow up, thereby pushing the price of gold to continue to rise.

Support level below: 2660-2666
In terms of support below, the 2660-2666 range is still an important support level for gold. If the price pulls back to this area, you can consider looking for long opportunities. From a technical point of view, gold has rebounded strongly in this area recently, and the probability of breaking through this support in the short term is low. Therefore, when it falls back to this support range, it is an ideal opportunity to enter the market.

Risk control: strict stop loss
Due to market uncertainty, especially in the European and American trading hours, there may be sudden black swan events that cause drastic market fluctuations, so risk control is very important. It is recommended to set a reasonable stop loss point in each transaction, especially in the European and American trading hours with large fluctuations. The stop loss can be set 10-20 points below the support level to ensure that in case of drastic market fluctuations, it can stop loss in time to reduce losses.

Operation strategy
Based on the current market situation, the operation idea is still to fall back and do more. When the gold price pulls back to the 2660-2666 support range, you can consider intervening to do more. The target position can be set in the 2700-2705 area. If it breaks through this area, it can continue to hold, and the target may further rise to around 2750. When entering the market, pay special attention to risk management, especially during the European and American trading hours, be particularly cautious and guard against violent market fluctuations.

Retracement and long: Wait for the gold price to pull back to the 2660-2666 support area, and go long in this area.
Stop loss setting: Set the stop loss below 2660 to prevent unexpected market fluctuations.
Target position: The initial target is set in the 2700-2705 range. If it breaks through this area, it can further look at 2750.
Risk warning
Risk of black swan events: Although gold currently has a strong upward momentum, market risks still exist. Sudden events may occur during the European and American trading hours, causing violent market fluctuations. Investors should always be vigilant to avoid being greatly affected by sudden black swan events.
Technical volatility risk: Gold has a certain pressure level on the technical side. If it fails to break through the 2700-2705 range, there may be a risk of a pullback. At this time, it is necessary to adjust the operation strategy in time to avoid holding positions for too long and encountering price declines.
Summary
In general, the upward momentum of gold is relatively strong. Affected by the situation in Russia and Ukraine and global economic uncertainty, the safe-haven demand for gold still exists. Technically, gold has broken through 2690 and has the potential to rise further. In terms of operation, you can wait for gold to pull back to the 2660-2666 area to enter the market and go long, set a reasonable stop loss, and strictly control risks. Maintain a cautious trading attitude, especially during the European and American trading hours, to ensure the flexibility of trading strategies and the effectiveness of risk control.

4 天前

交易進行

As of Friday, November 22, spot gold prices hit a nearly two-week high when entering the European session after rising for five consecutive days, trading at $2,697.33/oz, with an intraday increase of 1.04%. Despite the strengthening of the US dollar and the continued high yields of US Treasury bonds, gold prices remain strong, showing strong safe-haven demand.

Russia-Ukraine conflict intensifies: The conflict between Russia and Ukraine has further escalated, driving the market's risk aversion sentiment. As geopolitical tensions continue to deteriorate, investors have sought gold, a traditional safe-haven asset, as a safe haven for funds. Therefore, gold prices have received strong support.

Technical analysis
Gold has now successfully broken through the key technical level of $2,700/oz, and has closed positive for five consecutive days, rebounding strongly, showing that bulls are dominant. The following is a specific technical analysis:

Daily level:

MA5 and MA10 moving averages golden cross: The short-term moving average has a golden cross, indicating that the short-term upward trend of gold is still relatively strong.
Support and resistance: The current support level for gold is in the 2680-2683 range, while the key resistance level above is in the 2710-2715 area. If gold breaks through the 2710-2715 range, the bull market may continue and continue to move towards higher price targets.
Market sentiment: The five consecutive positive rising trends have continued to strengthen the market's optimism about gold, especially if the gold price can stand firm at the 2700 mark, it may continue to rise in the short term.
4-hour level:
Bollinger Bands open upward: The upward opening of the Bollinger Bands indicates that the current price maintains an upward trend and the bulls have sufficient momentum.
Short-term support and resistance: The 2680-2683 range is still the key support level for gold in the short term. If the price falls back to this point, you can still consider going long. The short-term resistance level above is 2710-2715. If the gold price breaks through this area, it may start a new round of rising market.
Operation strategy and suggestions
Short-term operation suggestions:

Purchase long: Considering the overall upward momentum of gold, in the short term, we can focus on the pullback opportunities of gold in the 2680-2683 range. This support range is the key entry point for short-term bulls. If the gold price falls back to this area, you can consider going long appropriately, with the target around 2697-2700, or even 2710-2715.

Short on rebound: Although the current market performance is strong, we must also consider the short-term profit-taking that may occur on Friday, especially around 2710. If the gold price touches 2710 and does not break through, you can consider shorting appropriately, but the stop loss must be strict to avoid losses after the breakthrough.

Specific operation strategy:

Purchase long:
Entry point: When the gold price falls back to the 2680-2683 support range, you can consider going long.
Target: The initial target is set around 2697-2700, and the further target can be seen at 2710-2715.
Stop loss setting: It is recommended to set the stop loss below 2675 to prevent the risks brought by drastic market fluctuations.
Rebound short:
Entry point: If the gold price breaks through 2700, it can be considered to short when it encounters resistance in the 2710-2715 area and falls back.
Target: The target can be set near 2697 or 2680.
Stop loss setting: If it breaks through 2715, stop loss should be set in time and the strategy should be readjusted.

Risk management:
Strict stop loss: Whether it is long or short, stop loss needs to be strictly set to prevent sudden news from causing drastic market fluctuations, especially when US economic data is released and the situation in Russia and Ukraine continues to change.
Position control: Reasonably adjust positions according to the strength and weakness signals of the market to avoid excessive losses due to short-term fluctuations.
Summarize
After five consecutive positive gains, gold is still in a strong upward phase, with the bullish trend taking over in the short term. Due to the escalating situation in Russia and Ukraine and the rise in risk aversion in the market, gold still has the potential to rise further. In the short term, we suggest buying on pullbacks and selling on rebounds, focusing on the support of 2680-2683 and the resistance of 2710-2715. Strictly control positions and stop losses to avoid heavy losses in a highly volatile market.