Gold is trading with technical precision, respecting key levels. Yesterday, price rejected the 4400 support and immediately rallied by 25%, extending into the next margin zone amid geopolitical escalation.
We are currently testing this zone. We are monitoring price action for a reversal pattern, with a stop-loss set behind the recent swing high.
The fundamental outlook for gold remains weak; however, any news regarding a ceasefire—even a temporary one—would provide immediate support.
Solid move in gold.
We are approaching the 1/4 resistance level. There is a high probability of a reaction; we will monitor whether we can break through this quarter.
As anticipated, Gold tested the 1/2 margin zone yesterday, where price action consolidated near the daily close. It is worth noting that we have yet to see a daily close above this level, as the clearing session took place within the zone boundaries.
However, I still anticipate a recovery for the pair. My primary target remains the level of the V-shaped recovery identified on the higher timeframes.
