To understand what is happening with Gold it is always important to look at the higher time frames to establish where we are with the price action.
Gold is playing within a larger range of 1959.33 - 1676.69
You can see on the chart that the price is currently around the equilibrium of this range.
Price has also retraced back into the consolidation zone highlighted in the yellow box.
Note Gold consolidated in a similar manner back in July 2020 before it broke out to an all-time high.
WHAT TO LOOK OUT FOR?
The zone of 1808-1843 is now key to establishing long term direction.
Price could reject around 1843 zone and change direction although this would not be in line with seasonal expectations.
Break above 1843 zone and retest will set up for a long term bullish trend and the price is likely to break out of the larger range to the upside.
WHAT'S OUR BIAS?
We are bullish on Gold, taking into consideration all the fundamentals and seasonality we are expecting the price to resume its bullish trend.
A price drop and a D1 candle body close below 1750 will negate the bullish outlook.
1987 is our target on Gold within this quarter.
Gold is playing within a larger range of 1959.33 - 1676.69
You can see on the chart that the price is currently around the equilibrium of this range.
Price has also retraced back into the consolidation zone highlighted in the yellow box.
Note Gold consolidated in a similar manner back in July 2020 before it broke out to an all-time high.
WHAT TO LOOK OUT FOR?
The zone of 1808-1843 is now key to establishing long term direction.
Price could reject around 1843 zone and change direction although this would not be in line with seasonal expectations.
Break above 1843 zone and retest will set up for a long term bullish trend and the price is likely to break out of the larger range to the upside.
WHAT'S OUR BIAS?
We are bullish on Gold, taking into consideration all the fundamentals and seasonality we are expecting the price to resume its bullish trend.
A price drop and a D1 candle body close below 1750 will negate the bullish outlook.
1987 is our target on Gold within this quarter.
