Gold Targets $4,649 as Technical Picture Remains Bullish Amid Volatility

Gold's technical picture remains bullish, despite recent volatility, as it continues to challenge key resistance levels. According to analysis, gold futures have reclaimed their Daily VC PMI mean and are now targeting $4,649. The market is currently in a critical cycle window, with the focus on August 21-24 and 27-31.

The Daily VC PMI mean at $4,558 represents the principal short-term equilibrium, and as long as price holds above this level, the momentum bias remains bullish. However, traders should be aware that the probability of short-term profit-taking increases as price becomes extended above the mean.

On corrections, $4,558 becomes first support, while below the mean, Daily Buy 1 at $4,519 and Daily Buy 2 at $4,467 represent preferred reversion-buying zones. The market's technical strength is being reinforced by macroeconomic crosscurrents, including lower long-term yields and recent dollar weakness.

The preferred strategy remains to buy corrections rather than aggressively short strength, as the risk of losing some or all of an investment amount is high in financial instruments and cryptocurrencies.