Gold has been moving sideways in the short term. So, if you want to trade it, you should wait for a fresh trading signal. Technically, the yellow metal was somehow expected to grow after escaping from the down channel. But unfortunately, it has failed to jump and closed again above the $1,933 former high.
The upside scenario is still in cards as long XAU/USD stays above the $1,850 and above the downtrend line. A rejection from these levels will bring an upside momentum. Still, a major upwards movement will be confirmed by an increase above the $1,933 level.
A drop below the $1,850 static support signals a deeper drop in the short term. A larger corrective phase, decline, will be announced by a drop and stabilization under the $1,800 level.
- XAU/USD Trading Tips
Gold could decline if the USD continues to appreciate versus the other major currencies (EUR,GBP, CHF, JPY, CAD, etc). Now gold is trading in a neutral area between $1,917 and $1,850 levels, a downside breakout suggests selling, while an upside breakout from this range signal further growth.
We'll have a great buying opportunity from above $1,933 and a good selling signal if the price drops under the $1,800 psychological level.
