XAUUSD (gold) continues to churn below key resistance.
I wrote about the $1,740/50 area on June 9th.
In my opinion, that’s the area buyers need to clear on a daily closing basis to send gold higher.
If you’re new here, the “daily closing basis” refers to the 5 pm EST close.
You’ll need New York close charts (also called five-day charts) like the ones I use so that each daily candle opens and closes at 5 pm EST.
Until buyers close XAUUSD above $1,750, we can expect this consolidation to continue.
Key support for gold remains that $1,680 area.
Notice how $1,680 served as resistance in February and March before flipping to support following the April 13th breakout.
If buyers fail to hold prices above $1,680 on a daily basis, we’ll look to the $1,630 support level.
All in all, though, I continue to favor buying XAUUSD dips or breakouts as the uptrend that began in early 2016 is alive and well.
And I don’t expect that to change anytime soon.
Gold bull markets tend to last around ten years, which was also the case between 2001 and 2011.
If that holds true and the current bull market started in 2016, it implies that this uptrend has another five or six years to go.
That doesn’t mean there won’t be pullbacks along the way.
Any multi-year trend will have retracements, but that’s where some of the best opportunities materialize.
Given the long-term chart structure and what’s happening around the world, XAUUSD should continue to be a “buy the dip” kind of market.
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