Current price: 4905
Key point: 4755
Our preferred strategy: Buy positions above 4755 with a first target of 5000 and then a second target of 5110.
Alternative scenario: Stop loss and trend reversal upon breaking the 4745 level, targeting the 4640 level.
Technical commentary
After gold's sharp decline at the end of last week's trading from its historic high of 5597, the price reached the pivotal support level of 4400, coinciding with the 200-period moving average on the four-hour timeframe and the upward trend line from the low of last August.
Gold managed to rise from these levels and this rise is expected to continue to the 5000 level and then the 5110 level.
