XAUUSD (gold) started its pullback this week, but is it over or does the metal have lower to go?
Today’s video sheds light on what could be next for XAUUSD, including an update on my short position, key levels to watch, and targets.
I also share the latest on the USD index (DXY), and how that could affect gold.
Let’s get to it!
Gold finally started its pullback on Monday, something we haven’t seen for weeks and even months.
We’ve seen shallow pullbacks from the metal, but it has remained well-bid since February.
Monday’s selloff felt different due to the lack of a bid into the daily close.
It was also different in the sense that XAUUSD closed Monday back inside the ascending channel I discussed in the recent weekly forecast video.
As mentioned in that video, I have an XAUUSD short on from last week that is now well in profit.
My target for that short trade remains the open imbalance at $2,200.
With that said, $2,300 is serving as near-term support for gold, with a sustained break below that on the daily time frame exposing $2,265.
So, any additional pullback from current levels won’t be a straight shot to $2,200.
But as long as XAUUSD trades below $2,350 on a daily closing basis, I like the odds of a pullback into those support levels.
Alternatively, a sustained break above $2,350 would open up the recent highs near $2,400.
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