2.12 Investment Guest Midnight Gold Review: Gold Hits Resistance and Turns Downward, Short-Term Weakness Focuses on Range Trading
Gold hitting resistance and consolidating is a common market condition.
There's no need to get entangled in short-term gains and losses, nor should one lose rhythm due to short-term fluctuations. Trading wins with patience and success relies on risk management; maintaining a stable mindset is more important than betting on the right trend.
Today's gold opened around 5083, briefly rising to 5099 but failed to sustain the bullish momentum, subsequently facing pressure and retreating to a low of 5039, currently trading around 5070.
Market expectations for a Federal Reserve rate cut in March have cooled, and the dollar index remains strong, putting pressure on gold priced in dollars. In the evening, the three major U.S. stock indices saw slight gains, indicating a rebound in market risk appetite, leading to a flow of risk-averse funds out of the gold market, further pressuring gold prices.
On the 1-hour chart, gold prices have broken below the BOLL middle track, with the BOLL opening downward and the lower track providing short-term support. The DIFF indicator is running below the DEA, and the bearish green bars are continuing to expand, with bearish momentum gradually increasing, indicating further downside potential in the short term.
If there is a rebound in the 5080-5090 range, consider light shorting, targeting 5050 and 5020.
If there is a pullback in the 5040-5045 range, consider light longing, targeting 5050 and 5085.
