Gold continues its strong rally after reaching a new high, primarily focusing on long positions for trend-following

Author: Gold Miner Old Cat

Today, spot gold surged in a one-sided breakout rally, opening at 4523.05, dipping to a low of 4513.23 before continuing higher, hitting a new high of 4627.52. The current quote is 4623.27, up 2.51% from yesterday’s close, with no significant pullback overall, and the bullish momentum remains strong.

Market news is driven by multiple positive factors: soft US manufacturing data reinforces expectations of Federal Reserve rate cuts, a weaker dollar opens up upside space for gold; geopolitical tensions trigger safe-haven sentiment, combined with ongoing global central bank gold purchases, jointly pushing gold prices to new highs.

Technical analysis shows four-hour K-line charts closing with long bullish candles, with moving averages in a bullish alignment, Bollinger Bands expanding upward, and MACD showing increasing red bars, indicating ample bullish momentum. Although overbought, there are no clear reversal signals, and the strong pattern remains intact.

Strategy-wise, focus on buying low and avoid blindly shorting. Support levels are around 4600 and 4580, resistance is in the 4630-4650 range. If a pullback tests support and stabilizes, consider adding long positions. Breakouts above 4630 can be followed with trend-following, with stop-loss placed below key support levels.

Disclaimer: This article is for market analysis purposes only and does not constitute trading advice. Trading involves risks; please invest cautiously.