Gold strategy analysis for next week, hope it helps you

380
The current gold price stands at $3,273, showing a significant decline from previous levels. Looking back at Friday's trading, the gold market was in a state of "unrelenting decline": during the early Asian session, gold attempted a rebound, edging up to around $3,328, but was quickly met with resistance and pulled back. The downward trend continued into the European session, and with the release of the U.S. May Personal Consumption Expenditures (PCE) price index data during the U.S. session, gold prices fell further, hitting a low of around $3,355. Although there was a small rebound in recovery afterward, it eventually closed near $3,274, forming a large阴线 with a long lower shadow on the daily chart.


**Factors Influencing the Trend**
Market sentiment has reacted strongly to the optimistic agreements reached on trade-related matters, which has significantly boosted risk appetite. Simply put, when people feel the market environment is safe and there are plenty of profit opportunities, they are less willing to park their money in safe-haven assets like gold, thus greatly reducing gold’s appeal as a safe haven.


**Technical Analysis**
- **Daily Chart**: Gold has broken below the 5-day moving average, and short-term moving averages have formed a "bearish alignment"—it’s like a group of friends who were originally running in the same direction suddenly all turned around and started running downward.
- **4-Hour Chart**: The Bollinger Bands have widened, and gold prices are like being pushed by a force, moving steadily downward along the lower band. The previous top-bottom conversion level at around $3,310 is crucial. If gold fails to reclaim this level next week, it will be like losing an important position in a battle, which will intensify short-term selling pressure and make it highly likely that the downward trend continues.


**Outlook for Next Week**
The market will be bustling next week:
- Major central bank governors worldwide will hold a panel discussion, like a gathering of "financial giants" to discuss important matters. Their remarks and consensus may have a significant impact on the market.
- The non-farm payroll data, long known as a "heavyweight bomb" in financial markets, will also be released. It reflects the state of the U.S. job market, which is closely linked to the economy and monetary policy, so its release often triggers sharp market fluctuations.
- Additionally, talks about whether Powell will resign may continue to ferment next week, stirring up the market.

Affected by these major events, gold prices are expected to fluctuate more violently around the lower Bollinger Band at $3,270 per ounce next week, and there is a need to be cautious of a second dip.

**Comprehensive Judgment**
The gold market faces high uncertainty next week, but the probability of an overall bearish trend is relatively high:
- **Upper Resistance**: Pay attention to the $3,310–$3,300 range in the short term, a key boundary between bulls and bears. A breakthrough here could bring a turnaround for gold.
- **Lower Support**: Focus on the $3,250 level in the short term. A break below this level may open up further downside space.

From the indicator signals:
- The MACD double line is running below the zero axis, forming a death cross, and the green energy column is continuing to expand—like a car stepping on the gas, accelerating downward.
- The RSI is operating in the oversold region around 39. Although there is a possibility of a short-term bottom, it also faces a pullback correction. However, the bearish momentum currently holds the upper hand.

Gold strategy analysis for next week, hope it helps you

XAUUSD sell@3290~3280
SL:3310
TP:3370~3350

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.