Gold prices reached the record high area early last Thursday after the FOMC meeting, hitting 2,075 before correcting lower, with the decline accelerating after the release of the US Nonfarm Payroll (NFP) report.
This context, along with some technical factors, contributed to a spike in XAU/USD to 2,075; the area of record highs, but it quickly pulled back, unable to firmly consolidate above 2,050.
However, XAU/USD still has strong support above 1,970. While above, losses seem limited, a break lower, on the contrary, could trigger stops and open the door to more losses, targeting initially the 1,950 zone and then 1,910.
On the upside, for daily trading, if Gold recovers levels above 2,020, it would alleviate the current bearish pressure. If it manages to consolidate above 2,050, it would be back on the road to 2,100.
Although the trend is up, the sharp retreat from 2,075 – if confirmed by a move to sub-2,000 levels – could suggest that the next leg may be to the downside.
This context, along with some technical factors, contributed to a spike in XAU/USD to 2,075; the area of record highs, but it quickly pulled back, unable to firmly consolidate above 2,050.
However, XAU/USD still has strong support above 1,970. While above, losses seem limited, a break lower, on the contrary, could trigger stops and open the door to more losses, targeting initially the 1,950 zone and then 1,910.
On the upside, for daily trading, if Gold recovers levels above 2,020, it would alleviate the current bearish pressure. If it manages to consolidate above 2,050, it would be back on the road to 2,100.
Although the trend is up, the sharp retreat from 2,075 – if confirmed by a move to sub-2,000 levels – could suggest that the next leg may be to the downside.