On Thursday, May 28th, during the Asian trading session, spot gold prices experienced a sudden and significant drop. The latest news regarding the US and Iran stimulated a surge in oil prices and a strengthening US dollar, putting heavy pressure on gold. Spot gold prices recently touched a low of $4368 per ounce, plummeting nearly $98 during the day. According to a Reuters report, the US conducted another overnight attack on an Iranian military facility. This has escalated tensions further as Washington and Tehran engage in negotiations aimed at ending a conflict that has lasted three months.
According to Iran's Tasnim News Agency, citing a military source, US forces opened fire in the area of Hormuz Port near the Strait of Hormuz in Iran. This incident followed a confrontation between the Iranian Revolutionary Guard Corps and a US oil tanker attempting to pass through the Strait of Hormuz.
Analyzing gold from a daily chart perspective, the K-line has broken through several short-term MA moving averages. The moving average system continues to diverge downwards, indicating a relatively clear short-term bearish trend. The MACD indicator's green bars are continuing to expand. The Relative Strength Index (RSI) is approaching the oversold zone but has not entered it, suggesting the possibility of further declines for gold prices.
From a 4-hour chart perspective, gold is exhibiting a downward trend with bears in control. The K-line movement shows consecutive downward closes with very weak rebound momentum, indicating strong bearish market forces and no current reversal signals for the bulls. On the 4-hour chart, the MACD shows a bearish crossover with expanding volume. The stochastic indicator is hovering at low levels, representing a weak, low-level consolidation pattern for the price. The 14-day RSI is at 24, within the bearish zone and in oversold territory. Overall, for today's gold trading, the recommendation is to sell on rallies.
Gold Trading Strategy: Strategy: It is suggested to consider selling short in the range of 4405-4407, with a stop loss at 4428, targeting around 4350 and 4306.