Gold has remained in consolidation mode since coming off its historic highs. Although whipsawing with the rest of the major currencies on US jobs data it will be prudent to remember that the yellow metal at this point is about geopolitics. A flare up of violence in the Israel-Hamas conflict could happen any time fueling attempts for the historic high, while a breakout of peace should see us collapsing through the consolidation lows.
Resistance
- 2353.68 – Daily Consolidation Low / High
- 2339.65 – 20D Moving Average
- 2320.59 – Friday High
Support
- 2281.70 – Daily Consolidation Floor
- 2267.75 – Intraday Pullback Low
- 2239.94 – 50D Moving Average
XAUUSD saw a high wave doji inside a consolidating daily chart suggesting a lack of conviction among bulls and bears. At this point going along with market caution may be the best choice for Gold traders suggesting we sell at the approach of resistances accompanied with long wicks and buys off 2281.70 the consolidation floor. Any flare up of violence will have us focusing on a push to historic highs while Israel backing off its plans for a Rafa invasion is the kind of catalyst to take us down toward the 50D Moving Average.
