Last week, I mentioned the significance of the $1,680 area for gold (XAUUSD) several times.
I also talked about it in last weekend’s forecast video.
The $1,680 region has been a key horizontal level for XAUUSD since February of last year.
It’s also the support level of the descending channel that’s been in place for the last eight months, as well as a two-year trend line.
And last but not least, $1,680 is near the 61.8% Fibonacci retracement of the 2020 to 2021 range.
Here’s how it all looks together:
The chart above is the same one I posted on March 2nd.
Sure enough, Monday reached a low of $1,677 before today’s bounce that’s currently sitting well above $1,700.
So, what’s next for gold?
As I mentioned last week, XAUUSD bulls need to clear the $1,750/60 resistance area to send gold higher.
That’s the next critical resistance level.
If XAUUSD buyers can close the pair above $1,760 on a daily closing basis, gold could target the channel top near $1,850.
Only a daily close below $1,680 would negate the bullish outlook.
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