Gold Approaches First Key Support — Will It Hold?

Getting there

Gold is approaching the steep trend line that’s been in place since September. We already tested the 50-day MA during the mini flash move overnight. Around $4,600 (±$50) is where gold has to stabilize if this move is going to remain constructive.

Zooming out, we’re only back to mid-January levels. The real issue is positioning: too many momentum trades turned into outright FOMO, with little thought given to downside risk management.