The Price-action (Xau-Usd spot prices on my reports) was under Selling pressure yesterday and got lower on each Hourly 4 candle but on a slow pace which was an indicator that the decline is over. However, I needed to see the Hourly 4 #MA200 broken and closing above it to confirm a reversal. Like I said yesterday with the Daily chart neutral, I believe Gold is well Supported within #1,702.80 - #1,695.70. Still, I didn't took any risks. The reason of that decision is - after every steeper fall on Gold, Volatility kicks in and Trend indecision and could pause the Bullish reversal. As expected Gold broke through the optimal Buying spot (#MA200 on Hourly 4 chart) trend line and as the #1,695.80 #1,705.80 Support zone held, Gold turned Neutral again and Bullish on Medium-term which is reason of engaging my Buys pursuing higher Targets (#1,737.80 is my first point of interests). The main driver behind it is of course the pull back on Stock markets and at the same time rise on Usd-Jpy pair, as the markets are attempting an recovery. Gold will get out of the mentioned Neutral zone when #1,732.80 (#MA50 on Hourly 4 chart) breaks, since that current point rejected the Price-action on multiple occasions. However, reasons above are enough for me to engage my set of Buys with respectful Stop-loss, not to endanger the Monthly Profit. Today, Fundamental side has lot to offer, so market awaits Volatility. I expect sharp drop on Stock markets which could add Buying pressure on Gold. I engaged my Buys a bit earlier than I expected but don't want to miss decent opportunity and #MA50 Gap fill.
The last few dips on gold have been bought up very fast, take March 20th as an example, price movement quickly changed breaking into new ATHs. On the longer-time frames it looks like people are out here adding when prices become favorable. We hit $1694 and jumped back to $1727, that was a strong move.
Looks like $1700 will become new support for gold to try to make its next leg higher to $1750+
Looks like $1700 will become new support for gold to try to make its next leg higher to $1750+