Gold has been surging, and while I expected it to hit $3,000 this year, I definitely didn’t anticipate it happening in the first semester...
So, let’s address the big question: Can the bulls maintain this level?
Looking at the chart, since early March,
XAUUSD has climbed 2,000 pips (around 7%), but what stands out is that 1,500 of those pips (5%) came in just one week.
No matter how strong the bullish momentum and fundamentals are, I believe this kind of rally is unsustainable.
Technical Outlook
After pulling back from its all-time high of 2,950, gold made a false breakout, followed by an almost vertical move upward, briefly interrupted by two consolidation phases.
Fundamental Factors
The FOMC meeting is today, and while rates are expected to remain unchanged, the real market mover will be Jerome Powell’s press conference. His comments could trigger significant price action.
My Take
I expect gold to start correcting after the press conference, regardless of what Powell says. However, this is a highly risky trade, so I’ll stay on the sidelines until I see a clear reversal signal.
Final Thoughts
At the time of writing, gold is consolidating within another rectangular range, with resistance at 3,040. If we see a spike above and then a drop back to around 3,030, that would signal (for me) that gold has topped—at least for now. In that case, I’ll be looking to short with a target of at least 500 pips. Until then, my approach is simple: wait and see.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
So, let’s address the big question: Can the bulls maintain this level?
Looking at the chart, since early March,
XAUUSD has climbed 2,000 pips (around 7%), but what stands out is that 1,500 of those pips (5%) came in just one week. No matter how strong the bullish momentum and fundamentals are, I believe this kind of rally is unsustainable.
Technical Outlook
After pulling back from its all-time high of 2,950, gold made a false breakout, followed by an almost vertical move upward, briefly interrupted by two consolidation phases.
Fundamental Factors
The FOMC meeting is today, and while rates are expected to remain unchanged, the real market mover will be Jerome Powell’s press conference. His comments could trigger significant price action.
My Take
I expect gold to start correcting after the press conference, regardless of what Powell says. However, this is a highly risky trade, so I’ll stay on the sidelines until I see a clear reversal signal.
Final Thoughts
At the time of writing, gold is consolidating within another rectangular range, with resistance at 3,040. If we see a spike above and then a drop back to around 3,030, that would signal (for me) that gold has topped—at least for now. In that case, I’ll be looking to short with a target of at least 500 pips. Until then, my approach is simple: wait and see.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.