XAUUSD .
GOLD JUST HIT THE DANGER ZONE — ARE BUYERS ABOUT TO GET TRAPPED?
So guys, the upside momentum we were expecting in Gold on CPI day finally played out. I hope everyone who followed the buying side yesterday managed to book some good profits.
Now, let's talk about what we can expect from Gold on Thursday. Are we still bullish, or are we starting to see a slight change in market sentiment?
If you watched my CPI analysis, I had already mentioned higher-level targets around $4,450. And as you can see, Gold has now reached this area.
But at the same time, I also mentioned that once Gold reached these higher levels, we could start seeing some bearish pressure building up.
If you look at the left side of the chart, you'll notice that this is actually a very important resistance area. Around June 5th, we saw a strong rejection from almost the same zone.
Because Gold has now returned to this area, I believe sellers are becoming much more active above $4,450. So for me, this is not a level where I expect Gold to simply break out directly.
There is also a possibility that the buyers who entered around $4,360 and are still holding their positions could get trapped over the next sessions.
The reason is simple. The kind of bullish strength Gold needs to continue moving higher is simply not looking convincing to me right now.
If you look at the recent price action, Wednesday also started with a strong upside move right from the market open.
Today, we saw something quite similar. Gold again opened with strong upside momentum, but after reaching the higher levels, the market reversed sharply.
After that, Gold tried to find some support around the Asian low near $4,398. But whenever Gold comes close to the day's low and tries to reverse while strong sellers are sitting at higher levels, I prefer to be very careful with those buying moves.
That's why, for today, my focus is slightly more toward the downside.
My plan is actually very simple. As long as Gold rema
farah khan
