GOLD: The Market has Now Entered a Consolidation Phase
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The current overall trend for gold (XAU/USD) is weak and bearish, with short-term structural consolidation at lower levels. Strong non-farm payroll data last Friday (June 5th) caused a sharp drop in gold prices, while earlier this week, potential ceasefires in the Israeli-Palestinian and Iranian-Israeli geopolitical situations eased safe-haven demand, suppressing any rebound in gold prices. Currently, after falling to a two-month low near $4,268, it has stabilized and is temporarily trading sideways around $4,330. $XAU/USD(XAUUSD.FOREX)$
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Technical Analysis:
Following a sharp one-sided plunge, gold has been consolidating within a range after breaking directly through the previous rectangular consolidation zone (the 4450–4500 area). It subsequently tested the 4268–4281 area before rebounding, forming a short-term support zone!
Moving Average Resistance: Although gold prices have rebounded and the downtrend has slowed, with moving averages beginning to flatten, the price remains under pressure from higher-timeframe moving averages (the H1 MA100 or the daily 50-day moving average, around the 4350–4360 level).
The market has now entered a consolidation phase, with short-term bulls and bears locked in a sideways tug-of-war around the 4332 level.
With no major U.S. economic data releases today, gold prices are likely to consolidate at lower levels throughout the day! After a rebound, a sell-off is expected to dominate.
Key Price Levels: First Resistance: 4350 - 4360 First Support: 4300 - 4303
Strategy: Sell: 4345 - 4348 TP: 4320 - 4315 SL: 4360 (set according to personal preference)
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