FX:XAUUSD updates another high to 2431.4 and then begins to shed heavily amid profit taking by traders. The weekend also proved to be fundamentally important for the markets, which may react strongly.
Most of the nearly $100 drop is due to profit taking by traders as the price reaches psychological levels, but the drop to 2300-2350 allows to find new buyers at relatively cheap prices. From Saturday to Sunday the next and not unimportant armed conflict between Iran and Israel is developing, which in general can affect the prices of commodities and futures quite strongly. On H1 the price is declining to the trend support and is testing the liquidity area of 2330-2350. In all likelihood, the market may open with a gap on Monday amid the crisis in the Middle East. The area below 2328 may still remain protected and play an important role in price formation.
Resistance levels: 2354, 2400, 2428 Support levels: 2328, 2303
Fundamentally everything is quite complicated and not stable, Gold still plays an important role as a hedge asset and interest in the metal is getting stronger, the growth from 2300-2350 is likely to continue
gold hit 3000 plus yesterday, Monday will open up with the biggest gap in history!
CJBlueNorther
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@amirpacman27, What happens when you're wrong, and gold plummets because the market makers already took profits and are now looking to capitalize off you bulls? Iran is bluffing, and the whales know this, that's why the closed their positions Friday.
RLinda
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@CJBlueNorther, The whales also knew that there would be a reaction from Iran. Most likely, they even knew when it would be. Perhaps that is why there was a profit taking and a price reduction to 2300 in order to further increase