USDX
100.470

0.25%

XAUUSD
3275.02

1.52%

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61.023

0.66%

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1.12195

0.18%

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1.32802

0.04%

USDJPY
146.057

0.49%

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20453.20

1.96%

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      Gold Plunges as Sentiment Turns Weak

      Commodity
      Summary:

      Today's oscillation range should be $2400 - $2440, and it is better to buy low and sell high.

      Buy XAUUSD
      End Time
      CLOSED

      2399.95

      ENTRY

      2440.00

      TGT

      2380.00

      SL

      3275.02 -50.70 -1.52%

      1995

      Points

      Loss

      2380.00

      SL

      2379.93

      CLOSING

      2399.95

      ENTRY

      2440.00

      TGT

      Fundamentals

      During Friday's (July 19th) Asian session, spot gold oscillated slightly, and it is now trading at $2425. 
      Yesterday, gold plunged as expected, and it dropped below $2440 this morning, heading towards the significant level of $2412. The main reason was the fade of sentiment and the depreciation of non-ferrous metals. After the sentiment faded, gold bulls sold their positions and dragged the price lower.
      However, U.S. initial jobless claims last week rose to 243,000 unexpectedly, the largest growth since the beginning of May. Data also supported rate cut expectations, but the market sentiment reversed significantly. In my opinion, gold will enter a phase consolidation stage, and the decline will continue in the near term, despite a long-term bullish trend. How much the price will drop in the current retracement is crucial.  

      Technical Analysis

      After the decline on Wednesday and Thursday, gold opened lower on Friday, likely to form three bear candles, i.e. the 'Three Black Crows' pattern. Such a pattern will signal a phase top and result in a continuous depreciation. Therefore, before the nonfarm payrolls data at the end of July or the beginning of August, gold will keep falling to $2392.
      In the 4H chart, gold showed a top pattern on Wednesday, and extended the decline on Thursday after failing to cross above $2475. As it continued to plummet this morning, it is not appropriate to sell gold in a downtrend now. The resistance will be at $2432 and $2440. If one wants to go short on gold, do it after a rebound, with targets at $2410 and $2400.
      Gold Plunges as Sentiment Turns Weak_1

      Trading Recommendations

      Trading direction: Buy
      Entry price: 2400
      Target price: 2440
      Stop loss: 2380
      Support: 2410.000/2380.000
      Resistance: 2440.000/2475.000
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Peterson

      Analysts

      As a seasoned trader, I possess a distinctive perspective on the supply and demand dynamics, price fluctuations, and market trends of copper, gold, crude oil, and other bulk commodities. This allows me to promptly seize trading opportunities and make informed decisions.

      Rank

      --

      Articless

      589

      Win Rate

      0.00%

      P/L Ratio

      1.42

      Focus on

      XAUUSD, WTI, USDJPY

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