Gold will first see a correction, then a sharp rise

In yesterday’s article, I mentioned that gold was likely to rebound toward the 2890 level while emphasizing its significance as a key resistance. As expected, gold tested 2890, faced rejection, and then entered a period of consolidation. However, today, due to concerns over a potential U.S. economic slowdown triggered by recent economic data, risk aversion surged, leading to a strong rally in gold during the Asian session, breaking through this critical resistance zone.

With 2890 breached, the previous downtrend line is no longer valid, signaling a confirmed shift back to a bullish trend. As a result, today’s strategy focuses on buying dips to capitalize on further upside momentum.

From the 1-hour chart, we can observe a potential inverse head-and-shoulders pattern forming. If gold retests 2890 and rebounds, this pattern will be completed, significantly increasing the probability of a move back toward the historical high of 2956.

Given that 2890 has now turned from resistance into support, and after multiple tests, its strength is undeniable, a pullback to this zone is highly probable.

Today’s trade strategy is straightforward:

The 2920–2930 zone is a resistance area where we can consider short positions, targeting 2890.
Once gold reaches 2890, we will shift to buying for further upside potential.
Finally, I want to emphasize that trading strategies serve as a reference framework. However, trading requires adaptability—adjust your positions based on market dynamics rather than strictly following predefined levels and patterns.