Is Gold Set to Explode or Fake Out at 3400?

GOLD PLAN 22/05 – TERROR ATTACK SHOCKS MARKETS | Is Gold Set to Explode or Fake Out at 3397?

Markets have just been hit by fresh geopolitical tension:
An Israeli diplomat was shot dead in Washington D.C. during a high-profile Jewish community event near the Holocaust Museum. The shooter allegedly shouted political slogans, and the FBI is now treating the case as a potential anti-Semitic terrorist act.

Former President Donald Trump called the event “disgusting” and urged the U.S. to stand strong against extremism.

🟡 This incident triggered a wave of risk aversion, pushing safe-haven assets like GOLD into the spotlight once again.

🌐 FUNDAMENTAL CONTEXT:
The USD remains under pressure due to weak U.S. economic data (housing, manufacturing, retail).

Despite the Fed’s “higher for longer” tone, markets are pricing in potential rate cuts by Q3.

Rising geopolitical tensions in the Middle East & U.S. soil may fuel further gold demand in the short term.

📈 TECHNICAL OUTLOOK (H1 Chart):
Price is nearing FVG resistance at 3395–3397, which could serve as a liquidity trap for breakout traders.

Key mid-zone resistance: 3344–3356, where price might stall or reverse if upward momentum weakens.

Strong support levels: 3303 – 3288 – 3277, aligned with previous structure and demand zones.

📌 TRADE PLAN:
Buy zone: 3296 - 3294
SL: 3290
TP: 3300 - 3304 - 3308 - 3315 - 3320 - 3330 - ???

Buy Scalp: 3316 - 3314
SL: 3310
TP: 3320 - 3324 - 3328 - 3332 - 3340 - 3350

Look for bullish reaction from the support zone and enter with proper risk management.

🔻 Sell zone: 3395 – 3397
SL: 3401
TP: 3390 - 3386 - 3380 - 3376 - 3370

🔻 Sell Scalp: 3358 - 3360
SL: 3364
TP: 3354 - 3350 - 3346 - 3342 - 3338 - 3330

If price spikes into FVG and shows exhaustion or bearish reversal, short setup is valid.

⚠️ Warning: Due to geopolitical headlines and gold trading near psychological resistance, expect high volatility and potential for traps.

🎯 Stick to your zones. Manage TP/SL properly. Do not chase price!