Gold on the 4-hour timeframe:
Currently, the resistance levels in this chart range are of significant importance, indicating prices at 1948.500 – 1954.880. There are signs of a potential reversal from these levels. Otherwise, a confirmatory level of ascent at the 0.864 Fibonacci level, within the price range of 1973.817, can serve as a crucial Point of Reversal Zone (PRZ) for the global gold market. An untouched and important support range will be at a price of 1924.211, which is suitable for trading in a pending limit style. The Moving Average Cross of 60 and 200 on the 4-hour timeframe requires further confirmation, which could lead to a retest of the resistance range.
Trading and Analysis of Gold
The gold market is one of the most important and popular markets in the financial world, recognized as one of the most valuable precious metals throughout history and various cultures. Gold continues to maintain its significance in financial markets. Trading and investing in the gold market come with their own importance and risks. To analyze and trade in this market, the following factors should be considered:
1. Fundamental Analysis: Fundamental analysis involves studying economic and global factors that influence the price of gold. These factors include inflation, exchange rates, monetary and fiscal policies, changes in supply and demand, and global news.
2. Technical Analysis: Technical analysis relies on past price charts and patterns to predict future price movements of gold. It includes studying candlestick charts, trendlines, technical patterns, and financial indicators.
3. Risk Management: Traders should pay attention to risk management. This includes determining the amount of capital you are willing to risk in your trades, using financial derivatives to protect your capital, and setting profit and loss expectations for your trades.
4. Engaging in Global Markets: The gold market is a global market, and economic and political events worldwide can impact its price. To trade and analyze this market effectively, one needs to stay informed about global news and event changes.
5. Utilizing Various Financial Instruments: In the gold market, traders can use various financial instruments such as futures contracts, exchange-traded funds (ETFs), and options to diversify and manage their risk.
Considering the impact of factors like inflation, exchange rates, and changes in global conditions, the gold market remains an important avenue for investment and trading. Traders and investors should carefully analyze and select appropriate strategies to maximize their returns in this market.
Source : Tradingview.com