February 13: On the previous trading day, Thursday, February 12, international gold prices encountered resistance, fell back sharply, and closed lower. A resurgence of AI-related panic triggered a sell-off in tech stocks, leading to a plunge in U.S. equities and a liquidity-driven stampede. Traders sold metals to cover losses in stock positions. Additionally, comments from former President Trump that the U.S. "must" reach a deal with Iran reduced safe-haven demand, causing gold to drop sharply during the session. The price once again retreated to test the support line of the nearly three-month ascending trend channel. While these factors represent short-term pressure, they also present another opportunity to enter long positions. Early session entries yielded significant profits.
After reaching $5,100.26, gold traded within a range between $5,080 and $5,045 for most of the day, consolidating. Then, around midnight U.S. session, the price suddenly plunged over $160, recording a daily low of $4,878.77. It eventually stabilized and recovered somewhat, closing at $4,921.86. The daily trading range was $221.49, with a net loss of $170.97, representing a decline of 3.36%.
Looking ahead today, Friday, February 13, international gold opened higher, buoyed by support from the ascending trend channel. The initial move was a rebound. Some digestion of the liquidity-driven sell-off has occurred. Furthermore, U.S. Initial Jobless Claims for the week ending February 7 came in higher than expected, and U.S. Existing Home Sales for January showed weakness, providing ongoing support for gold prices.
During the day, market attention will focus on U.S. CPI data for January, both the year-over-year and month-over-month figures, unadjusted. Market expectations lean towards bolstering prospects for interest rate cuts, which would be positive for gold. Therefore, for the day, gold still possesses upward momentum. The trading strategy remains focused on buying on dips when support levels are touched.
Technically, on a monthly chart, after gold extended January's bearish shooting star pattern with another sharp decline in February, it touched the support level formed by the resistance-turned-support of the ascending trend line broken at the start of the year. This led to a stabilization and rebound, keeping the price within the new bullish cycle's range and above the 5-month moving average. This suggests the bearish pullback from January may be exhausted, and the new bullish outlook remains valid. Going forward, prices are expected to strengthen and climb again either by holding above this trend support or after a period of consolidation.
On the daily chart, yesterday's decline pushed gold below the short-term moving averages and the midline of the Bollinger Bands, giving short-term advantage to sellers. However, support exists below from the ascending trend channel and moving averages like the 30-day and 60-day, indicating the broader bullish trend remains healthy. Consequently, the current pullback is viewed as a chance to watch key moving average support levels for new long entry opportunities.
For specific real-time trading guidance, follow live account information.
Preliminary intraday trading level ideas are for reference only; exact entry and exit points will be confirmed via live account notifications: Gold: Support levels to watch are around $4,900 or $4,840; Resistance levels to watch are around $5,020 or $5,095. Silver: Support levels to watch are around $74.00 or $70.90; Resistance levels to watch are around $79.70 or $83.60.