InvestingScope

XAUUSD: Hit the Multi Year Resistance. Sell opportunity.

Short
FX:XAUUSD   Gold Spot / U.S. Dollar
Gold has just entered today the 1,355 - 1,365 1M Resistance Zone with 1D highly overbought ( RSI = 77.219) due to June's aggressive bullish run. The price is undoubtedly inflated due to the recent geopolitical tensions (U.S. - Iran) and the correlation with DXY has been broken. As soon as tensions ease, those dynamics will normalize and Gold should start moving lower towards its fair technical value.

This presents an optimal sell opportunity as the 1M Resistance Zone has worked as a sell accumulation point since 2017 and with a slight variation (-1,375) since 2014. We are now initiating a long term sell strategy on Gold with a long term TP = 1,220.








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