XAUUSD: Can be bullish, but beware of pullback risk

21 Eki

Gold prices have continued to rise this year, hitting new highs, even as the U.S. stock market hit a series of record highs.

Although the rise of safe-haven assets does not usually follow stocks, due to the demand of central banks and the decline in real interest rates, coupled with the constant geopolitical conflicts, gold has become the best way for investors to invest, which in turn continues to push up gold prices.

Judging from the current trend of gold prices, gold has no signs of peaking at all, and the bullish trend is very strong, but at the same time, this moment is the most dangerous.

The rise now seems to be completely abnormal. Once a certain opportunity appears, the decline will also be a waterfall.

From the 1H chart, we can see that gold does not give a big chance of callback now, which is completely different from the previous rise. This is nothing more than wanting you to keep chasing the rise at a high level.

But if you chase the rise like this, it will be very dangerous, and it is easy to chase the rise to the top of the mountain.

The 2720 position in the figure is today's opening price. If the gold price can stabilize above 2720-2725, then gold will undoubtedly continue to rise and further hit new highs. But if it falls below 2720 today, then be careful. The gold price may further test the 2700 integer mark. If 2700 falls below, it will be the beginning of a sharp correction.

So if you want to participate in the transaction today, you have to look at the situation in the 2720-2725 area. You can buy when the price stabilizes here. Otherwise, I do not recommend other trading positions.