Gold stays positive as long as it remains above 3684.7. tradeCompass shows profit targets and highlights the 3680 level, which could change market dynamics. Currently, gold futures are at 3688.6, above the bullish line of 3684.7. This suggests a positive trend, but with today’s expiration, we might see sideways movement instead of strong trends.

Key Levels for Upward Movement

Important levels for upward movement include initial resistance at 3692.7, with potential gains possibly reaching 3696.2 and 3699.3. If momentum holds, a target of 3707.8 is feasible. On the other hand, if bearish momentum kicks in below 3679.3, we may see a drop to 3675.5, and then to 3668.7 and 3662.8 for more support. Institutional traders use Volume Profile and VWAP to monitor market activities. Volume Profile shows where trading is accepted or rejected, while VWAP indicates fair value, with deviation bands revealing market conditions. tradeCompass keeps trading organized by setting clear thresholds and limiting trades. It adjusts stops after achieving partial profits and protects positions at breakeven after TP2. This careful approach reduces risks from market changes. As the week wraps up, traders should be alert for possible reversals due to expirations. Gold above 3684.7 signals a bullish tone, with the 3680 level being a crucial pivot. Since gold is trading near 3688.6, the immediate bullish outlook stands as long as it remains above 3684.7. Considering today is an expiration day, expect choppy price movements instead of a steady trend. Keep an eye on the 3680 pivot; if it breaks below that, sellers might take control quickly. This consolidation near all-time highs is no accident; it’s fueled by strong central bank demand. Back in 2024, this trend picked up, and the World Gold Council reports that central banks have added over 1,000 tonnes to their reserves in the past year. This consistent buying gives a solid foundation to the market.

Market Conditions and Strategy

Additionally, ongoing government spending boosts gold’s status as a safe-haven asset. The U.S. national debt surpassed $37 trillion earlier this year, highlighting risks of currency debasement. This economic pressure keeps long-term investors committed to gold. For derivative traders, consider using dips toward the 3680-3685 support area as entry points for bullish positions in the weeks ahead. Options traders may find it beneficial to sell put spreads below 3660 to earn premium while managing risk, taking advantage of the strong support. This strategy sets us up for the next potential rally once this consolidation phase concludes. We’ve experienced similar price action before, especially after gold surged past $2,200 in early 2024. The market paused to adjust to the new price levels before moving higher again. The current sideways movement just under 3700 feels familiar, suggesting accumulation is in play. Thus, the plan for the upcoming weeks is to navigate the short-term fluctuations while keeping a bullish perspective. A clear break and hold above the 3708 resistance could signal the end of this pause and ignite the next buying wave. Until then, managing risk around the 3680 pivot remains crucial. Create your live VT Markets account and start trading now.

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