The price of gold decreased a little since yesterday but the retreat could be only a temporary one. Technically, the rate is traded into the buyer's territory and it could jump higher anytime again.
Gold is trading at $1,966 level, far below $1,992 yesterday's high. USD's rally has added more sellers on gold. The current drop could help us to search for other long opportunities. Gold may rise higher if the results of the US ADP Non-Farm Employment Change will be discouraging.
Gold failed to reach the R1 ($1,994) level and the $2,000 psychological level. However, it remains bullish as long it stays above the Pivot Point ($1,948) and above the lower median line (lml) of the ascending pitchfork.
The price was somehow expected to increase after escaping from the down channel's body. If it jumps above $1,992, it wil continue its strong bullish run towards the median line (ml).
- GOLD Trading Tips
Gold hesitates to pick a trajectory in the short term. That is why you should wait for a bullish closure above the R1 (1,994) level and above the $2,000 psychological level before going long with a potential target at $2,075 all-time high.
If you want to sell XAU/USD, you should wait for a drop below the $1,900 level before taking action. Only a drop below this static support will really validate a corrective phase.
