FX.co ★ XAU/USD, GOLD

Gold Short-Term Outlook: Today, I'd like to write about the current movement of gold prices. Gold prices may fall further, but the situation will not change as the current trajectory is unlikely to reverse. Rather than ignoring this level, it needs to break through this level and shift to a seller's position. For that to happen, a price reversal is needed. However, at this point, gold prices still have room for another downward wave, and this scenario could materialize within the next few hours. For example, the price could fall another $10 or $20 from the current level. Technically, this is evident in the movement within the same parallel descending price channel that contracted sharply last weekend and has continued to contract since. So far, we can also see a descending channel in the first 1-hour candlestick and the candlestick for the new week. Both channels are moving in the same direction, indicating a lack of strong buyers.

In such a situation, the probability of the price reversing direction through the 1-hour channel is very low. Therefore, it is more attractive to look for selling opportunities than buying based on the movement of the two channels indicating trading. The $4544.96 level represents an upper resistance level. A breakout above this level would suggest a move towards the upper channel boundary at $4539.96. We will sell some shares in anticipation of reaching the targets of $4531.96 and $4528.96. The target counters indicate a shift in the channel and could trigger an upward rebound. However, riding the trend is preferable as retracement growth may be more attractive. The price currently displayed is trading at $4544.96 per ounce, and the precious metal has been relatively stable over the past few candlestick periods.