Gold market analysis

"Gold Prices Build Momentum to Challenge $4,310" 5/12/2025 10:09 Completed 

Yesterday, the gold price maintained a fluctuating trend. Assuming that the Federal Reserve will cut interest rates by 25 basis points next week, the recent fluctuation in the gold price is partly due to speculators taking advantage of the volatility to make profits and accumulate strength for a large-scale move next week. Secondly, it is easier to control the price trend by keeping the gold price within the recent fluctuation range. 

Yesterday, the spot gold price hit a low of $4,175.84 before the European market opened and gradually rebounded. It reached a high of $4,219.27 at the close of the London market before falling again. This morning in the Asian market, it hit a low of $4,194.9 and then rebounded, temporarily rising above $4,200. Therefore, the spot gold price has basically remained within the Gann angle range of $4,210 to $2,160, and the resistance at $4,210, which is at a 90-degree angle, is indeed very strong. However, from the perspective of the daily chart, the intraday fluctuations of gold prices this week are completely undetectable. 

$4,200 is likely to be a strong support before the interest rate decision. 

Gold prices rose sharply last Friday and broke through the descending triangle's lower trend line. This week, they have generally shown a sideways trend and formed an ascending flag pattern. Today is the last trading day of the week. It is estimated that speculators will start to push up gold prices on Monday next week, or even today. The high is likely to occur on Wednesday next week, and 4,200 US dollars is very likely to become a strong support before the interest rate decision next week. The possibility of falling below this level is very low. In other words, the spot gold price is likely to fluctuate between 4,210 and 4,260 US dollars, and it is highly likely to challenge the next strong resistance level of 4,310 US dollars next week. 

Measured by the TD line, if the gold price breaks above the descending triangle's lower trend line on the hourly chart, the measured target is approximately $4,265. If it falls below the upper trend line, the measured target is $4,112. However, given the gold price's repeated fluctuations this week and its potential to rise back above $4,200, coupled with the growing market expectation of the Federal Reserve cutting interest rates, the possibility of a breakout to the upside is relatively high. 

The above content is for reference only and does not constitute investment advice.