Gold Market Analysis | Reversal and Key Trading Zones Explained | Fx

 Last week, gold broke through the short-term downtrend boundary of 2369 - 2361, signaling a reversal of the bearish trend. With this shift, traders should now consider long positions, targeting the upper Target Zone of 2451 - 2436.

Trading Strategy and Key Support Levels

If a downward correction occurs, the price may drop to the support level (A) between 2342 - 2337. When gold tests this zone, it presents an opportunity for long trades with the primary target set at the high from July 5. Currently, gold has retested the 2350 level and formed weak bullish candles, indicating a potential setup for further upward movement. However, it is crucial to focus on clear market structures and avoid trading unless a perfect setup is observed.

Market Events and Influences

Today's trading will be influenced by Federal Reserve Chair Jerome Powell's testimony in the New York session. Traders should pay close attention to this event, as it can significantly impact gold prices and market sentiment.

Summary:

Gold has reversed its short-term downtrend after breaking through the 2369 - 2361 boundary. Traders should consider long positions with a target in the upper Target Zone of 2451 - 2436. In case of a downward correction, look for support between 2342 - 2337 to initiate long trades, aiming for the high from July 5. Pay attention to Jerome Powell's testimony today, as it could influence gold prices and market dynamics. Always focus on clear market structures before entering trades.