Today I’m going to discuss the level that will determine the future direction for gold.
I’ll also share some targets to keep in mind should we get the break I’m looking for.
Watch the video below and scroll down for the annotated charts and analysis.
Gold carved out an all-time high this week, breaking above the $2,075 resistance on Monday.
However, the rally wasn’t built to last, and XAUUSD closed down 2% on Monday after being up 3.8% at session highs.
Monday’s reversal suggests a potentially larger correction coming for gold.
That said, the $2,000 area will hold the key to this month’s direction.
As long as that area is intact as support, shorting gold here is ill-advised, in my opinion.
But if we see a sustained break below the $2,000 region, levels like $1,930 are likely next.
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