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      Gold Enters Value Zone, Hawkishness Dominates Upside Momentum

      Eva Chen

      Summary:

      The current price range of gold offers certain allocation appeal, but its upside potential remains significantly constrained under the framework of hawkish central bank policies.

      Buy

      XAUUSD

      EXP
      Trading

      4562.14

      Entry Price

      5200.00

      TP

      4170.00

      SL

      4510.62 +17.44 +0.39%

      0

      Point

      Flat

      4170.00

      SL

      CLOSING

      4562.14

      Entry Price

      5200.00

      TP

      Fundamentals

      In the past few weeks, gold has been largely viewed by the market as a liquidity tool, used to hedge against volatility in other assets and meet margin requirements.
      However, as prices have retreated to a relatively reasonable range, its nature is gradually shifting back to that of a value investment target, which is also an important driver for capital inflows.
      Nevertheless, major global central banks remain vigilant against oil-driven inflation and maintain a hawkish policy stance.
      Against this backdrop, real interest rates stay elevated, exerting persistent pressure on the non-interest-bearing asset gold. As a result, every rebound faces strong resistance and upward momentum is constrained.
      Gold Enters Value Zone, Hawkishness Dominates Upside Momentum_1

      Technical Analysis

      Although geopolitical developments (such as Iran rejecting relevant proposals) have not triggered further safe-haven buying, gold prices have shown strong resilience and held steadily above the $4500 level.
      Prices are currently capped near $4550 without triggering significant selling, indicating that market sensitivity to news flow is declining.
      The trading logic is gradually shifting from event-driven to technical-driven.
      From an indicator perspective, the MACD has displayed a bullish convergence signal, suggesting weakening downward momentum and that bullish forces are expected to build gradually.
      A break above the $4550 resistance zone could open the way for further gains toward the key psychological level at $4604.

      Trade Recommendations

      Trade Direction: Buy
      Entry Price: 4498
      Target Price: 5200
      Stop Loss: 4170
      Valid Until: 2026-04-29 23:55:00
      Support: 4375/4306/4325
      Resistance: 4504/4602/4739
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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