XAUUSD: Bullish on Gold? Not So Fast!

by Justin Bennett  · 

August 2, 2023

by Justin Bennett  · 

August 2, 2023

by Justin Bennett  · 

August 2, 2023

Today I’m going to show you why gold might not trend in the direction everyone expects.

I’ll share the bullish and bearish scenarios for XAUUSD, including key breakout levels to watch.

I’ll also discuss how the US Dollar Index (DXY) is the asset to watch right now.

Watch the video below and scroll down for the annotated charts and analysis.

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I would argue that most traders are bullish on XAUUSD right now.

And rightfully so, given the chart and the state of the world.

However, I think it’s a mistake to get too bullish on gold without considering other factors, like a bullish-dollar scenario.

It reminds me of a famous Mark Twain quote:

It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.

– Mark Twain

The bottom line is, don’t mistake an opinion for fact.

As bullish as you may be on gold, there’s a chance you could be wrong, just as there’s a chance I could be wrong with this analysis.

With all that said, my plan for XAUUSD is incredibly simple.

A bearish scenario for gold consists of a sustained break below $1,935 and a DXY breakout above 103.00.

That would open up levels like $1,900 for XAUUSD.

A bullish scenario for gold consists of a sustained break above the May channel resistance near $1,965 and a DXY breakdown below 102.00.

That would open up levels like $1,980 and $2,000.

As always, the above is just my opinion and is not financial advice, so trade at your own risk.

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