In yesterday's London session, the price of gold entered a consolidation phase before exhibiting notable movements during the New York session. This activity coincided with the release of data on Flash Manufacturing PMI and Flash Services PMI, both of which fell below market expectations. Consequently, the price of gold surged by approximately 300-350 pips.
Looking ahead to today's trading, specific zones have been identified for potential buying and selling opportunities. For prospective buyers, favorable entry points are anticipated around the 2335 level. Conversely, for those considering short-term selling strategies, a scalp sell could be initiated if the price dips below 2317. However, it's crucial to exercise patience and await the formation of optimal market structures before executing any trades.
Additionally, traders are advised to keep a close eye on forthcoming economic releases, particularly GDP and Unemployment data scheduled for release tomorrow. These data points are likely to introduce further volatility and may impact market sentiment.
Overall, the current market conditions present favorable opportunities for traders. However, prudent decision-making and careful analysis remain paramount amidst the dynamic nature of the market.