Gold futures have rallied back above the VC PMI Daily Mean of 4,109 after rejecting the Daily Buy 1 level at 4,042. The methodology's next upside objectives cluster at 4,165 and 4,166, with 4,260 marked as the further weekly target.
Gold futures rallied back above the VC PMI Daily Mean of 4,109, which Investing.com analysis reads as confirmation that bullish momentum remains intact. The market rejected the Daily Buy 1 level at 4,042 after briefly testing lower prices near 4,011, creating a mean reversion setup.
Under the VC PMI methodology, price returning above the daily average following an oversold condition shifts probabilities toward a test of higher resistance levels.
Resistance cluster sits at 4,165 and 4,166
The next upside objectives are the Daily Sell 1 level at 4,165 and the Weekly Sell 1 level at 4,166, forming a resistance cluster. A sustained close above that area would increase the probability of an advance toward the Daily Sell 2 level at 4,232, with the Weekly Sell 2 target at 4,260 as the next major objective.
Those levels identify statistically extreme prices where disciplined traders begin scaling out of long positions rather than initiating aggressive new buying.
Cycle and seasonal work point the same way
From a Square of 9 perspective, gold has completed a rotational advance from the recent low near 4,011, placing the current rally into the next resistance phase of the cycle. Should price exceed the Sell 1 zone with expanding volume, the Square of 9 projection supports an extension toward 4,260, where stronger profit-taking is expected.
The seasonal cycle points the same way. Late July has historically marked an important transition period as precious metals begin positioning for stronger demand into August and September, a window that frequently produces renewed institutional accumulation after corrective consolidations.
Momentum indicators turn higher
The MACD has reversed sharply from deeply negative territory, confirming improving upside momentum. Rising volume accompanying the recent breakout adds confidence that buyers remain in control despite short-term volatility.
Under the same approach, positions opened near the Buy levels progressively reduce exposure into the Sell 1 and Sell 2 objectives while protective stops rise. Investing.com's own disclosure notes the methodology rests on historical probability and does not guarantee future results.
Source: Investing.com
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