- Summary:
- Gold prices added to their gains in the Asian session, and might be ready for the next bull leg. Read our article now for our outlook on XAUUSD.
Gold prices added to their gains in the Asian session, and the price bounced as projected from around the $1404 level as I mentioned in my update on Gold on June 25 when gold prices were trading at $1426.
In the Asian session, the price reached as high as $1424, but further gains are needed before I suspect traders will be willing to raise the trend defining level from the $1375 level.
If the price manages to take out the current yearly high at $1438.98, I think it would be fair to assume that traders will reduce the trend defining level to the June 27 low at $1398, as a break to the $1438.98 high would make a June 27 low a more significant swing low.
Until the price trades higher I will maintain the $1375 level as the true short-term trend defining level, and I will assume that the price will trade sideways between the $1375 and YTD high, with an underlying bullish bias, causing traders to buy around the $1400 level. If the $1400 level does not hold, I suspect traders will emerge around 1390 level as it is the 78.60% Fibonacci correction level of the rally from 1376 to $1438.98.Don’t miss a beat! Follow us on Twitter.