GOLD: The Overarching Trend of Gold Remains Bullish

XAUUSD Gold Traders
08-17 14:10

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The past week saw a dramatic tug-of-war between bulls and bears in the global gold market. Gold opened at $4346 on Monday (August 11th), surging to a two-month high near $4450 mid-week. However, profit-taking led to a sharp 1.3% drop on Thursday, and further declines to a weekly low near $4310 on Friday. Just when bears thought they had the upper hand, unexpectedly weak US retail sales data reversed the tide, resulting in a textbook V-shaped reversal for gold prices, ultimately closing at $4375.80, a weekly gain of approximately 0.8%.

The weekly swing of approximately 140 points resulted in a bullish weekly candlestick with a long lower shadow, demonstrating the resilience of the bulls. This was a result of cooling US economic data, expectations of a Fed rate cut, and escalating geopolitical tensions in the Middle East. Currently, bullish sentiment is clearly rising, but the future market remains heavily reliant on changes in Fed rate hike expectations. This week, the Fed meeting minutes will be a key focus. Gold continued to rise in Asian trading on Monday (August 17), breaking through 4,400 again and reaching a high of around 4,416.5. It is currently trading around $4,400. $XAU/USD(XAUUSD.FOREX)$

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Technical Analysis: $Gold - main 2612(GCmain)$

The overarching trend of gold remains bullish, and during the Asian session, the market staged an extremely strong, one-sided rally along the midline. Although it has pulled back somewhat from the high of 4416.50,

on the H4 timeframe, it continues to trade within a very clear ascending channel or a high-level flag consolidation pattern. The lows are continuously rising, indicating that medium-term bullish forces still hold an absolute advantage.

The current 1-hour chart shows short-term consolidation, which is actually building momentum for the next major uptrend on the H4 timeframe. The key short-term support is currently at 4370–75; strategically, we should “favor buying on dips and be cautious about shorting against the trend”!

Last Friday’s Buy strategy can continue to be executed!

XAUUSD Buy: Around 4375, TP: 4430–4440, SL: 4355

Gold Breaks Below $4,000! Will We See $3500?
Gold fell approximately 1.4%, with spot prices breaching the $4,000 level. Bears argue that rebounding real yields and cooling geopolitics will pressure prices further, with $3,900 as the next technical support; bulls maintain that persistent central bank buying and de-dollarization trends keep the long-term thesis intact, viewing sub-$4,000 as a medium-term accumulation zone. Tactically, aggressive traders may scale in near $3,900 with tight stops, while conservative investors should await stabilization signals before re-entering. Will you buy this gold dip, or step aside and wait?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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