GOLD: Rally followed by a pullback

Gold is showing a trend of rallying in the Asian session followed by short-term pressure today. While strongly supported by expectations of a Fed rate cut, it also faces high-level pressure from the weekly and monthly closing. The intraday trend is likely to be a “rally followed by a pullback”.

After contesting near the middle band and trend line yesterday, gold chose to break upward. Despite the inertial upward momentum in the Asian session, the MACD indicator on this timeframe has shown a downward divergence, signaling a potential pullback risk. We need to focus on the European and American session trends closely,if the rally fails to sustain after moving higher, a “rally to highs then close lower” pattern is likely to form.

Intraday Short-term Resistance: Around 4195. If gold successfully breaks above this resistance level, it may face pressure in the 4210 – 4230 range.
Short-term Support Levels: Keep an eye on the 4150 – 4160 zone. A breakdown below this level could trigger a further decline to the key support at 4140.

Sell 4185 – 4190
SL 4195
TP 4160 – 4150 – 4140

Buy 4160 – 4165
SL 4155
TP 4180 – 4185 – 4190