Will gold continue to plummet?

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The historical rise and adjustment of gold

Historical high impact: Gold prices once hit $2,800, showing strong upward momentum. However, after failing to break through this important level, gold prices entered a correction phase, indicating that the market has strong resistance above, causing gold prices to fall.

The end of the five-wave rising structure: The five-wave rising structure of gold has ended, indicating that the market's upward momentum has been exhausted and has entered an adjustment or downward channel. At this time, the transition from a bullish trend to a bearish trend means that market sentiment has turned more cautious, or even bearish.

Technical analysis
High-level triangle convergence: After failing to hit 2,800, gold prices formed a high-level triangle convergence pattern, which usually indicates that the market direction is unclear and waiting for a breakthrough. After that, the gold price took a sharp turn and quickly fell below the upward trend channel, further confirming the formation of a bearish trend.

Key support and resistance:

Upper resistance: The current rebound in gold has not been sustained. In the short term, the 2585 line is an important resistance area. If the gold price rebound touches this area and fails to break through, it may fall again.
Support below: The short-term support level below is at 2540. If the gold price falls below this support level, it may continue to fall, and the target may be 2533 and 2473, two key points of the previous rise.
Further downside: If 2533 and 2473 are lost, the gold price may pull back to 2370. This level may be the beginning of this wave of rise, that is, the low point that the gold price may return to.
The impact of fundamental factors
Risk appetite rose after Trump's victory: Trump's victory brought about the market's risk appetite, leading to the continued strengthening of the US dollar. The strengthening of the US dollar usually suppresses the performance of gold, because gold is denominated in US dollars, and the strong US dollar makes gold more expensive for holders of other currencies.
Gold hovers near the low point: Since the results of the US election were announced, the price of gold has fallen by nearly 7%. As the US dollar strengthened, the market's preference for risky assets increased, weakening the attractiveness of gold as a safe-haven asset.
Short-term outlook and operation strategy
In the short term, the gold price is in a weak structure: According to the analysis of the hourly line, the gold price is gradually forming a downward platform, and the rebound repair speed is slow, and it has not effectively rebounded to the low level of the platform, indicating that the market's rebound momentum is insufficient. In the short term, gold may continue to face downward pressure.
Rebound short-selling ideas: Based on the current technical aspects, gold may encounter strong resistance near 2585 in the short term, and if it rebounds to the 2576-2572 area, it may be a good short-selling opportunity. In terms of operation, you can pay attention to the rebound selling opportunities in these areas.
Downward target: If the gold price breaks through the 2540 support, the next target will be 2533 and 2473, and further downward movement may test the 2370 line.
Summary:
The current gold market is showing a relatively weak trend in both fundamentals and technical aspects, and the gold price may continue to fall in the short term. It is recommended to pay attention to the resistance range of the 2585 line above. If the rebound fails to break through, you can consider shorting. At the same time, the support level below is at 2540. If it falls below, it may further drop to 2533 and 2473, and may eventually return to 2370. This downward trend may continue, especially against the backdrop of rising risk appetite, the safe-haven demand for gold may be weak.

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Trade aktif

After gold continued to fall, the price rebounded at 2540.
In the short term, it rushed to 2576 and then fell to the support of 2554 before rising again. At present, the low point is formed in the short term. The trend is in a slow rise stage. But the downward trend channel above is under pressure. The trend is still in a bearish market.
In terms of operation, it should be noted that in the evening US trading period, if the price still remains around 2570, beware of the continued rise after the channel breaks, and the upper side will test the 2585-2590 area.
On the contrary, if the US trading period continues to weaken in the 2568-2663 area, then the lower side will follow the trend to test 2540 and 2533.

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Trading ditutup: target tercapai

After gold rebounded, the current price strengthened twice at 2536 and 2554. In the short term, it entered a slow rise trend, and the upper hourly channel was under pressure. In the short term, a descending triangle converged and broke through. At present, the hourly line has broken through the upper track of the downward channel. Horizontal narrow adjustment, the upper 2576 line resistance. The lower short-term support is 2563 line support.
After the short-term gold rebounded and broke through, the upper resistance of 2585-2590 was tested.