Last week, spot gold reached record highs close to $2,940, but it’s since paused for breath.
So, is gold gearing up to continue its upward trend?
Let’s dive into the 4-hour chart to see what clues we might find.
Gold faced a bit of a pullback on Friday as the positive developments in Russia-Ukraine peace discussions calmed geopolitical tensions and buoyed overall market sentiment. With this, XAU/USD dipped from its previous highs of $2,940 to $2,880, where it found some solid support.
It’s important to bear in mind that market movements are often guided by fundamental factors. If you haven’t already, be sure to look at the economic calendar and keep up with the latest daily financial news regarding gold and the U.S. dollar.
At present, gold seems primed to extend its long-term trend, as it’s sitting above the $2,880 mark and the Pivot Point line at $2,895 on the 4-hour chart. Keep an eye out for more green candlesticks and steady trading above $2,900, potentially attracting more bullish interest and possibly propelling XAU/USD back to its high of $2,940 or even new peaks.
However, if we start seeing red candlesticks or get signs of trading consistently below the trend line and Pivot Point support, then brace yourself for possible downward moves in the safe haven’s value. Should the market head further down, watch for a potential fall to the S1 Pivot Point line at $2,848 or the $2,820 region.
Whatever your trading inclination, don’t forget to keep an eye on this week’s major news events and any developments that could sway market sentiment as you strategize your trades.
