Current price: 4300
Key point: 4305
Our preferred strategy: Buy positions above 4305 with a first target of 4390 and then a second target of 4465.
Alternative scenario: Stop loss and trend reversal upon breaking the 4280 level, targeting the 4220 level.
Technical commentary
Gold fell sharply at the end of last week's trading, coinciding with renewed tensions in the Middle East. The price reached the pivotal support level of 4305, coinciding with the 200-period moving average on the four-hour timeframe. A rebound towards the 4390 level is expected.
A break below 4280 and a close below it on an hourly candle invalidates the bullish scenario and the decline continues to 4220.
