🏆 Weekly Gold (XAUUSD) Review: Aggressive V-Bottom Short Squeeze!

🔷 Market Overview

Gold staged an explosive reversal on Friday to close at $4,540.53. The previous structural breakdown of the blue ascending trendline has turned out to be a classic bear trap.

Aggressive dip-buying triggered a powerful V-shaped recovery after prices hammered out a two-month low of $4,365.76 on Thursday.

Despite heading for a monthly decline due to persistent inflation concerns and rate hike expectations, the week ended with dominant buyer control.

🔷 Technical Snapshots

🟢 Bollinger Bands (Daily)

The daily price closed strongly at $4,540.53, recovering off its lows and closing in on the 20 SMA middle band ($4,586.16).

Looking at the 4H timeframe, Gold fiercely broke above the middle band ($4,484.72) and is testing the upper band ($4,581.00), validating a short-term trend reversal.

🟢 The RSI

The daily RSI has ticked up to 42.99. On the 4H chart, the RSI surged to 56.50, comfortably breaching the yellow signal line (44.80) into bullish territory, signalling substantial buying momentum.

🟢 Support & Resistance

Immediate Support: $4,484.72 (4H middle BB) and $4,411.28 (Daily lower BB).

Key Resistance: $4,581.00 and $4,586.19.

🔷 Fundamental Snapshots

The narrative shifted positively after reports that the U.S. and Iran may extend their ceasefire, easing safe-haven dollar demand and crude oil pressures.

Short-covering further accelerated as cooler core PCE data offered temporary reprieve from hawkish Federal Reserve rate paths.

🔷 Next Week: Key U.S. Data

Monday: ISM Manufacturing PMI

Wednesday: ISM Services PMI, ADP Employment

Friday: Non-Farm Payrolls (NFP)

🔷 The Verdict

Strong Bullish Momentum. The swift trendline recovery hints at further upside. If Gold clears $4,586.19, expect an extended run toward $4,761.11.

Not financial advice. Practice risk management.

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