XAU/USD is advancing amid the US dollar's weakness. Gold is trading at the $1,962 level. It is likely to face new upside obstacles after breaking above the immediate downtrend line.
Gold has decreased a little at the beginning of the week. However, the outlook is bullish if it breaks above the downtrend line. The bias remains bullish as long it stays above the downtrend line, above the PP ($1,948) level, and above the lower median line (lml).
- GOLD In the buyers territory!
Last week, the price of gold has finally managed to escape from the down channel's body and to close near $ 1,977. It decreased a little during the day but a temporary drop can be caused by the fact that gold may try to retest the resistance level before going higher.
Breaking above $1,980 level will signal further growth to the R1 ($1,993) and towards the $2,000 psychological level.
- GOLD Trading Tips
Buy at the breakout of the $1,980 level with an immediate target at $2,000 level. The median line (ml) of the ascending pitchfork could be used as a target as well. A breakout and stabilization above the median line (m) will indicate a sharp increase towards the $2,100 level.
Sell only below $1,900, the bias is bullish as long as gold stays above this downside obstacle.
