Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will likely NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.

So my SL buy stop at 1435 was taken out. Price action triggered a fresh buy stop above 1440, but I closed it out early at 1446 to more or less breakeven out of this misadventure. 😝

And of course, my S/L remained respected all the way.

As you can see from the H4 chart, price action completed a whole set (to the top of the last pink box) before coming back off to rest on the previous resistance-turned-support zone around 1425-30.

A couple of things in play here: dovish comments out of the Fed implying the need for more pre-emptive rate action especially if data shows the economy is slowing down. While a 25bp rate cut is now fully priced-in, more market players are paying up the odds for a one-time 50bp cut instead.

And then there’s the intel that gold has been in demand from central banks anyway over the past couple of months. With G7 sovereign debt now bearing negative yields, bonds begin to lose their appeal to investors.

Will price try for higher levels? Sure, why not?

Look at the Daily chart.

Assuming the support in the 1425-30 zone stays firm, gold can make for 1485 if the 1450 ceiling clears.

For intraday levels, I present the following: