US-Iran Talks Fall Apart Again, Where's Gold Headed?🏊🏻♀️?
The recent geopolitical tensions have been shaking up the gold market. Over the weekend, the US-Iran talks fell apart again, with both sides rejecting each other's proposals. This totally shattered market expectations for a resolution and has thrown gold's short-term trend into a new battleground. Let's dive into the recent market movements and discuss the strategies for trading gold going forward.
Market Recap
Looking back at last week's gold movements, the overall direction was completely dictated by the US-Iran situation. On Monday, Trump rolled out the so-called 'Freedom Plan' to try and open up the Strait of Hormuz, causing geopolitical risk sentiment to cool off quickly, leading to a significant drop in gold prices; then on Tuesday, the situation flipped as Trump abruptly halted the plan, reigniting geopolitical risks and sending gold prices shooting back up while oil prices weakened in sync. By Wednesday, gold had rebounded sharply, hitting around 4750, which is the core resistance level I've been emphasizing to everyone.
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5.11 Gold The biggest uncertainty variable in the global financial markets has undoubtedly landed on the geopolitical situation in the Middle East. Over the weekend, the ceasefire negotiations between the U.S. and Iran completely fell apart, with Iran outright rejecting the U.S. proposal. Trump publicly stated that the proposal had no room for acceptance, leading to an immediate escalation in Middle Eastern tensions.
This sudden geopolitical event has triggered a massive reaction in the global energy market. Concerns over potential disruptions to Middle Eastern oil supply have skyrocketed, with Brent crude prices surging over 3%. WTI crude has also spiked, nearing the $99/bbl mark, and the geopolitical risk premium in oil has fully returned.
The sharp rise in oil prices has quickly boosted global inflation expectations. There are widespread concerns that under high inflation pressures, the Federal Reserve will be forced to shift its monetary policy, likely maintaining a prolonged high-interest rate environment. For non-yielding assets like gold, this high-rate environment will continue to diminish its appeal, which has become the core catalyst for today’s early morning gold price gap down.
Gold opened with a direct gap down this morning, subsequently entering a wide-ranging consolidation pattern, with price volatility greatly amplified due to sudden geopolitical news. Meanwhile, the upcoming CPI data announcement is also exerting significant pressure on gold prices, with market sentiment heavily watching, leading to intensified long-short battles.
From a trading strategy perspective, conservative investors don't need to rush into the market; they can wait for market sentiment to gradually stabilize and for the CPI data to be released before aligning with market trends to avoid the chaotic volatility risk caused by news.
For short-term traders, there’s no need to blindly short; focus instead on capturing opportunities in the range-bound fluctuations following a sharp drop in gold prices. The core battleground for gold longs and shorts is currently at 4700. If this level can stabilize effectively, the overall operation should still lean towards low longs; the key support on the 4-hour chart is around 4670, which is also an important support level on the daily chart today. In the current market, avoid blindly chasing shorts; patiently wait for the 4670 support to stabilize before considering short-term long positions, and manage the rhythm of swing trading well.
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5.8 Gold Evening Showdown on Non-Farm Night! Gold Awaits Data to Set Direction
With just 2.5 hours left until the crucial release of the U.S. April Non-Farm Payroll (NFP) at 20:30 tonight, the global precious metals market has officially entered a calm before the storm. This NFP showdown will directly determine the short-term trend for gold. Currently, international spot gold is firmly stuck in the $4690-$4700/oz range, exhibiting an extremely tight consolidation phase, with both bulls and bears remaining cautious, waiting for the data signal to land.
From the current gold movement, we can see that ahead of the NFP release, the price has already rallied to a relatively high level. Based on chart patterns and market sentiment, it’s likely that after the NFP data is released, gold prices will first experience a pullback before starting a new trend. Right now, gold prices are battling around the critical support level of $4700, showing repeated attempts to bounce back, but the bullish momentum hasn’t managed to break through effectively. To truly open up upside potential, we need a strong drive from the NFP data.
The $4750 level is the key resistance point from yesterday's daily chart where gold made a strong upward move. If the short-term bulls can’t leverage the data to break through this level, any rebound will struggle to continue.
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What's the core impact logic of non-farm data? It's pretty simple, let’s break it down.
"Employment → Fed rate cut expectations → USD/real rates → gold prices". Given your current strategy in the $4500-$4700 gold range, let's explore three scenarios:
① Data significantly exceeds expectations (>100k, possibly close to 178k) The job market's resilience surpasses expectations, cooling Fed rate cut forecasts further, even delaying the first rate cut. Impact: The USD index and Treasury yields may see a short-term rebound, putting pressure on gold to pull back, testing the critical support level at $4500. If data far exceeds expectations, it might trigger a short-term drop, testing the validity of your support in the strategy, and be wary of further downside risks if it breaks below $4500.
② Data meets expectations (in the 50-80k range) Employment data shows a mild slowdown, aligning closely with market expectations, maintaining current rate cut forecasts. Impact: Market sentiment remains stable with no significant fluctuations, and gold continues to oscillate in the $4500-$4700 range, with limited short-term volatility, allowing for continued execution of your range trading strategy.
③ Data falls below expectations (<50k, or even negative growth) The job market shows clear weakness, reinforcing market expectations for a Fed rate cut within the year, possibly even an early cut. Impact: The USD and Treasury yields weaken, while gold is supported by rate cut expectations, rebounding to test the $4700 resistance level. If the data significantly underperforms expectations, it could push gold prices to break the upper range, initiating a new upward trend.
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5.8 Gold Yesterday, gold showed a range-bound uptrend, peaking at 4765 during the evening session before encountering significant short pressure, leading to a quick retracement back to the day's opening point. The daily candlestick closed with an inverted hammer pattern, indicating heavy sell pressure above and insufficient bullish momentum.
Considering both daily and weekly technical patterns, it’s likely that gold will maintain this range-bound structure until the non-farm payroll data is officially released this Friday. There are no conditions for a strong one-sided uptrend or downtrend in the short term. Additionally, traders should be cautious around Friday’s weekly closing, as market liquidity flushes can easily trigger sudden one-sided volatility; risk management is essential in this trading environment.
Resistance Levels
The first short-term resistance level is focused on 4712. If gold faces pressure and fails to break through this level, consider opening short positions. In the morning session, gold started its retracement from 4709, which has established itself as a strong intraday resistance point. The advanced strong resistance zone is identified between 4722-4732, a critical pressure zone where breaking through is quite challenging.
Support Levels
In terms of short-term support, look at the morning low of 4681. If gold effectively breaks below this level, the next target is the 4660 support level for the top-bottom conversion. The core strong support in the medium to long term is at 4630, and if gold retraces to this range, it presents a low-risk opportunity for quality long positions.
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5.7 Gold (Evening) The morning session saw gold maintain its bullish momentum, hitting a peak around 4720 before pulling back as expected. During lunchtime, the price retraced to around 4692, finding support and stabilizing, after which it rebounded again. In the European session, gold experienced a quick spike, reaching 4753 before facing resistance and retreating, with the overall trend aligning perfectly with our expectations.
After the second peak, gold faces critical resistance levels on the charts again. Next, we need to keep an eye on the economic data released during the US session, especially with tomorrow's non-farm payroll data coming up. Market trading will likely be cautious, and I still don't foresee gold making any significant one-sided moves; today, 4800 is unlikely to be surpassed. In the short term, we will probably see a range-bound consolidation.
(Chart 1) Draw the blue line; even though we didn't hit our entry point today, the target has been reached. Looking at 4780-4800-4850 below. (Chart 2) Even if you didn't follow the entry levels, at least Jiang Gong gave us a 50-point buffer.
These two positions are currently strong resistance and support levels. Unless there's a solid breakout, you can trade within the range. #美国4月ADP就业超预期 $XAU
The current short-term trend in the gold market is clear, with immediate resistance focusing on the 4725-4730 zone. Yesterday's gold price relied on bullish momentum to continue its rise. Today, it's crucial to pay attention to the technical pullback and adjustment rhythm, and to gradually build long positions based on key support levels, which is the more prudent trading approach right now.
In the short term, the first support level for gold is around 4665-4670, which is a critical defense level for the short-term market. The more significant strong support is at 4625-4630; this level serves as an important watershed for the bullish trend and must be closely monitored.
Combining the 4-hour candlestick analysis, the short-term trading range for gold is defined, with short-term support at 4665-4670 and core strong support at 4625-4630. On the upside, the short-term resistance is at 4725-4730, with further strong resistance seen at 4770-4780. Overall, the strategy continues to execute around buying on dips, and I will provide real-time updates on market fluctuations and precise entry points during the trading session. Everyone, please keep a close watch.
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If 4675 can't hold up tonight, then we're headed down to ↓4625, but I think we'll be okay. Let's see how this plays out. #特朗普暂停“自由计划” #币安推出黄金vsBTC未来资产对决活动