Gold remains on the defensive as the US Dollar strengthens, but downside pressure is limited by softer risk sentiment and lingering uncertainty surrounding delayed US economic data.
Entry Zone: Buy dips toward $4,065 – $4,080
Stop Loss: Below $4,035
Targets: $4,145, then $4,225 if momentum extends
Catalyst Watch: FOMC Minutes, delayed NFP release, shutdown economic impact, real-yield movements
Trading Rationale
Gold struggles to gain upward traction, but sellers also fail to push the metal below key support:
- Reduced odds of a December Fed rate cut support the USD, limiting gold’s upside potential.
- Economic worries from the record-breaking shutdown keep the door open for future Fed easing, helping gold stay afloat.
- Global risk tone remains cautious, providing underlying demand for safe-haven flows.
- The H4 timeframe shows buyers repeatedly defending the $4,055–$4,070 zone — a critical support cluster.
Despite short-term weakness, the broader structure favors a recovery as long as price remains above $4,035.
Key Technical Zones
Current Price: 4,078.17
Potential Resistance: 4,144.76 / 4,224.93
Potential Support: 3,998.94 / 3,922.47
DISCLAIMER & CTA
DISCLAIMER: Trading forex, commodities, and CFDs involves substantial risk and may not be suitable for all investors. This material is for educational purposes only and does not constitute financial advice. Always trade responsibly.
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