Spot gold costs took a breather after making new report highs earlier this week.
Is the commodity prepared to increase its uptrend after falling to a technical assist zone?
Immediately’s 4-hour chart might give us some clues!
Gold (XAU/USD) 4-hour Chart by TradingView
In the event you missed yesterday’s market value motion, you need to know that the U.S. greenback noticed shopping for strain as some merchants priced lower-tier U.S. studies pointing to a not-so-cool labor market. Different merchants additionally took income in case FOMC Chairman Powell’s speech later at present seems to be extra hawkish than analysts predict.
Spot gold, which turned decrease from its $2,530 report highs, hit backside close to $2,470 earlier than seeing bullish reversal candlesticks and considerably sustained shopping for strain.
Does this imply that XAU/USD is able to lengthen its August uptrend?
Keep in mind that directional biases and volatility situations in market value are sometimes pushed by fundamentals. In the event you haven’t but carried out your homework on gold and market sentiment, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
Take observe that XAU/USD turned increased on the 61.8% Fibonacci retracement degree, which is coincidentally close to a earlier resistance zone and a pattern line assist that’s been strong because the begin of the month.
If XAU/USD prints a pair extra bullish candlesticks, we may see a technical bounce from the 50% Fib and Pivot Level space. The pair might draw in additional patrons who may maintain an upswing all the best way to the $2,515 inflection level or the $2,530 earlier highs.
But when the U.S. greenback demand features momentum, then XAU/USD might lengthen its present downswing. Look out for bearish candlesticks and sustained buying and selling beneath the pattern line and the $2,475 earlier resistance zone, which may result in a revisit of the $2,450 or $2,440 earlier inflection factors.
Good luck and good buying and selling this setup!