The price of gold is traded at the $1,838 level after failing once again to take out the $1,862 static resistance. USD's temporary appreciation versus its rivals has pushed the yellow metal down in the short term.
Still, Gold has signaled that the corrective phase is over and that the buyers could take it higher again. The price moves sideways, so we need confirmation before deciding to go short or long on XAU/USD.
The US Retail Sales indicators released tomorrow could bring high volatility and could offer us a clear direction.
XAU/USD Decides Direction!
Gold plunged from $1,959 and now is trapped between the $1,862 - $1,848 support area. Still, the false breakdowns through the median line (ML) indicate that the price could increase again.
It's trapped between the $1,817 and $1,862 levels, an upside breakout from this range suggests buying while closing and stabilizing under the $1,817 represents a selling signal as XAU/USD will be expected to drop far below the $1,800 level.
Trading Tips!
Buy Gold if the price comes back above the $1,862 level, if it makes a new higher high. The $1,900 level and the upper median line (UML) represent short-term upside targets.
Sell if the price closes and stabilizes under the sliding parallel line (SL) and below the $1,800.
