FX.co ★ Gold Technical Analysis

Is the yellow metal heading toward the $4,360 level following the interest rate decision?

Precious metals markets experienced sharp volatility following yesterday's interest rate decision. Gold gradually regained its bullish momentum, attempting to recoup recent losses and trading within a positive range that reinforces the likelihood of maintaining an upward trajectory.

Technical Analysis and Price Action — 1-Hour Timeframe

Rebound from Channel Support: Gold opened the day's trading below the weekly support level of $4,277.95. However, it quickly found strong support upon touching the lower boundaries of the bullish price channels that have defined trading over the past two days.

Stabilizing Above Support: The price successfully returned to trade above the $4,277.95 level for several consecutive hours within the bullish channels. This provides an initial positive signal of buyer intent to assert control and target higher levels.

Expected Bullish Target: Focus is currently shifting toward the midline of the price channels, which intersects near the weekly pivot point at $4,360.23. Trading Recommendations and Expected Scenarios

Technical data on the hourly timeframe suggests a bullish bias for today's trading, based on the following levels:

Main Scenario (Bullish): Stability above the $4,277.95 level; targeting $4,360.23 (weekly pivot level). Invalidation: An hourly candle close below the ascending channel.

Alternative Scenario (Bearish): A break of the ascending channel and a drop below $4,277.95, targeting $4,207.58 (weekly support level S2).

Trading Plan and Risk Management

Buy Setup: Long positions remain the preferred option as long as the price holds above $4,277.95, with an initial target near $4,360.00.

Risk Management: It is recommended to place stop-loss orders below the lower boundary of the ascending channel and the aforementioned support level to protect capital against sudden volatility.