The price of gold dropped in the short term after registering an amazing rally. It is traded at 1797.40 at the time of writing, far below the 1814.30 Friday’s high. The correction could be only a temporary one, the rate could find demand soon.
Gold rallied after the FOMC and after higher inflation reported by the US and by the United Kingdom in the previous week. As you already know, XAU/USD is used as a hedge for inflation. The current corrective phase could help the buyers to catch a new leg higher.
XAU/USD Technical Analysis!
XAU/USD was expected to retreat after failing to reach the 1,815.57 and after registering a pin bar, a shooting star. The weekly pivot point (1788.64) is seen as a potential static support. Staying above it may signal that the retreat has ended.
Closing and stabilizing below the weekly pivot point may signal more declines. Coming back and consolidation above 1794.70 could announce that the bulls could take full control.
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