Facts:
- The search for liquidity in the market during the recent sell-off also contributed to an increase in supply in the gold market.
- However, the escalation of the trade war on the international stage should continue to favor gold as a safe-haven asset.
- New cooperation terms and low tariffs will not be negotiated immediately. This means that uncertainty—and thus demand for gold—may continue to persist.
Recommendation:
Long position at market price
- TP: 3140
- SL: 2950
Opinion:
Gold is beginning to show signs of stabilization, despite today’s slight decline of 0.03%. During the first part of the day, we observed a price drop to around 3000 USD per ounce, which coincides with local support. Importantly, gold successfully defended this zone. From a technical perspective, the 3000 USD level can be considered a key short-term support, the holding of which opens the door to re-testing the upper bounds of the recent upward channel. The nearest significant barrier remains the 3100 USD level – this is where the upper limit of the mentioned trend lies, aligning with local highs from recent sessions. A breakout above this resistance zone could signal a continuation of the uptrend and the beginning of a new wave of bullish momentum.
Given the fundamental market environment, ongoing uncertainty in equity markets, and strong demand from central banks, gold may continue to benefit from its status as a safe haven for capital. Taking the above factors into account, we recommend opening a long position on gold at the market price. At the same time, we advise setting a stop-loss order to minimize the risk of potential loss.
Methodology
The recommendation was based on the fundamental analysis of the gold market, its correlation with other financial markets, and technical chart analysis. The target levels were determined using classic support and resistance levels as well as price action analysis.
