Commodities Watchlist: Is XAU/USD Able to Lengthen Its Downtrend?

Commodity merchants collect ’spherical!

Spot Gold (XAU/USD) is having bother breaking above a resistance zone.

Will this result in the commodity extending its short-term downtrend?

Spot Gold (XAU/USD): 1-hour

Spot Gold (XAU/USD) 1-hour Chart

Spot Gold (XAU/USD) 1-hour Chart

In case you missed it, Spot Gold (XAU/USD) has been buying and selling in a downtrend because it discovered resistance on the $2,000 stage in mid-April.

The commodity then dropped to new Could lows ($1,830) after Uncle Sam’s 8.3% annual inflation determine toned down talks of “peak inflation.”

Now that the Fed has another reason to keep up its aggressive tightening schedule, merchants went again to purchasing the U.S. greenback.

XAU/USD had clawed its solution to $1,850 after the U.S. CPI launch nevertheless it seems like there are sufficient bears across the stage to kill the momentum.

And why not? $1,850 traces up with not solely a pattern line resistance but in addition the 100 and 200 SMAs and the 38.2% Fibonacci retracement of Could’s downswing.

You possibly can bounce in at present ranges if you happen to’re a pattern participant who’s assured that XAU/USD will lengthen its downtrend and make new Could lows.

In the event you’re fairly certain that gold bulls are simply getting began, then it’s also possible to place orders above the pattern line resistance and wager on a possible breakout.

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails threat. Please learn our Risk Disclosure to ensure you perceive the dangers concerned.

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