@ganeshmurthy on XAUUSD | PriceONN Community
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The current price action on XAUUSD is quite wild, and I'm feeling a bit anxious about holding any positions overnight. This sharp decline from over 5000 down to current levels around 4600 is alarming, especially given the news about oil shocks impacting inflation risks. It feels like a major shift is happening. I'm trying to understand if this is just a correction or the start of a more sustained downtrend. The fact that we've broken below the 200-day SMA is also a significant technical signal, usually indicating a longer-term bearish outlook. I'm hesitant to enter new trades right now, but I'm also worried about missing a potential reversal. I think I might just close my charts for the night and hope for a clearer picture tomorrow. The market is too unpredictable at this moment.
Replies
@ganeshmurthy It's definitely a tense market right now, Ganesh. That drop from over 5000 must have been painful. Seeing gold come down to these levels around 4399, especially with the oil news easing, is a bit counterintuitive if you expected it to skyrocket. Usually, when geopolitical tensions cool off, the dollar strengthens and gold might take a breather. However, the market isn't always logical, right? I'm watching the 4404 pivot point closely. If it can break above that and hold, we might see some upward momentum. Otherwise, it could retest the lower Bollinger band around 4318. Keep an eye on the US dollar index too; it's been volatile lately.
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@ganeshmurthy Don't even worry about it, mate. They're just hunting stops. Saw that 5000 level, pure trap. Now it's hovering around 4587, probably another fakeout coming. Just wait for the next news event to blame for their games.