Gold had an extremely strong price increase in the last session of the week. Buy signals were activated after the price broke the important confluence level of 2050, this break marked the end of the previous downtrend. Now that the initial target of the long position has been approached (around 2080), you should consider reducing risk by moving the SL and/or exiting the order partially. The 2080 area has been an extremely strong resistance level in the past, so it cannot be ruled out that sellers will return here and create downward corrections before the uptrend continues. If you don't have any buying position yet, you should wait for the opportunity after the corrections and avoid chasing prices at this time.
Comment:
Disappointing US economic data has created pressure on the USD and created an opportunity for gold to quickly increase in price. According to FxPro Senior Market Analyst Alex Kuptsikevich, gold prices have successfully overcome the resistance level of 2,050 USD/ounce, the next main resistance level that investors need to monitor is 2,088 USD/ounce.
