Gold has been stuck on a range play since the failure to follow through on its sell-off from new historic highs. As previously mentioned the much of the surge in Gold may be attributed to two factors, central bank demand, and hedging against inflation. While Central Banks are unlikely to suddenly stop buying, we note that inflation has come-off significantly from its highs a year ago. Given this we are wary of remaining committed for the upside.
Resistance
- 2397.27 – Previous Intraday High
- 2364.96 – High for the Week
- 2351.87 – Yesterday’s High
Support
- 2339.55 – Intraday Consolidation Lows
- 2321.84 – Low for the Week
- 2306.20 – Intraday Consolidation Floor
XAUUSD is a story of doubles, a double top in the weekly chart and a double bottom in the 4H level, as seen below. Notte that we also have prices in the middle of the weeks consolidation, though trigger wise the double bottom’s is closer at 2364. Given where prices are we prefer looking at the intraday trade as a straddle, a break of 2351 to take us to the double bottom trigger. Should 2339 give way we test the weeks low. It would be best to look for engulfing candles in the hourly charts for the breakout/entry.
