Gold: How much higher will XAU go?Gold continues to find support amid haven flows as equities tumble on trade war concerns.
But how much further can gold rise?
Well I think a lot of people had $3K+ pencilled in as their target. We are obviously well above the $3K level now at $3085, which may trigger some profit taking.
While dip buyers are lurking, a rug pull is becoming increasingly likely at these levels in my view. When risk appetite turns sour and stocks start falling, people tend to liquidate their profitable long gold positions to free up margin. Could we see something similar?
For me, the short term trigger could be a potential break below recent low and support around $3057-$3066, while in the slightly longer term view, a potential move below $3,000 is needed to trigger a more meaningful drop.
By Fawad Razaqzada, market analyst with FOREX.com