Strong momentum. Watch key levels.

Gold prices hit a new high on Tuesday. After a pullback to around 3940 in the European session, they continued their strong upward momentum, reaching a new high at 3985 before retreating slightly.

On the 1-hour chart, after a pullback in the European session that touched the lower Bollinger Band, prices rebounded strongly, rising straight up to reach a new high and currently trading near the upper band. The moving average system crosses upward, and the price continues to create new highs along the MA5 moving average.

The key position to focus on in the short term is the 3960-3965 area, which is the intersection of the MA10\20 moving average and the middle track of the Bollinger band. Therefore, if gold bulls continue to gain momentum, a correction will not likely fall below 3960. As long as the price remains above 3960, and after reaching 3980, resistance at the 4000 mark will be minimal.

Quaid recommends watching the 3960 area and entering a long position as soon as it stabilizes above 3960. The high point position focuses on the 4000 integer mark.