The Gold price rally has halted, as “double-top” candle chart appears to be soon confirmed, which in reverse could send XAU/USD prices toward the $3,000 figure and beyond. Momentum shows that buyers' strength is fading and that sellers are stepping in following a softer-than-expected US inflation report and weaker global outlook as market awaits further confirmation on US-China trade deal.
For a reversal of trend double-top confirmation, sellers must clear the May 1 low of $3,202. Once cleared, the next stop would be $3,100 and $3,000 respectively. However, in the interim, short term support level of $3,250 is holding well with a provisional level of both, natural support and 50% fibonacci level adding an additional cluster zone within that last major range.
Conversely, break above $3,300 will most like add another level of conviction for buyers to face the next resistance at $3,350. If surpassed, the next ceiling level would be an all time high of $3,501 and beyond. However, for gold to appreciate and continue its long term uptrend, new macro catalyst would need to emerge, as markets anticipate and turns to this Thursdays Retail sales and Jerome Powell's Fed speech.
For a reversal of trend double-top confirmation, sellers must clear the May 1 low of $3,202. Once cleared, the next stop would be $3,100 and $3,000 respectively. However, in the interim, short term support level of $3,250 is holding well with a provisional level of both, natural support and 50% fibonacci level adding an additional cluster zone within that last major range.
Conversely, break above $3,300 will most like add another level of conviction for buyers to face the next resistance at $3,350. If surpassed, the next ceiling level would be an all time high of $3,501 and beyond. However, for gold to appreciate and continue its long term uptrend, new macro catalyst would need to emerge, as markets anticipate and turns to this Thursdays Retail sales and Jerome Powell's Fed speech.
The Blueberry Team
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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.