Gold (XAU/USD) is on an upward trend, currently trading around 2676.00, close to its historical high of 2685.00.
During an event in Miami (at the London Bullion Market Association conference), key central bank representatives announced that they are actively buying gold to strengthen their reserves, both for financial and strategic reasons.
Here in the US, with the upcoming presidential elections (where Trump and Kamala Harris are nearly tied in the polls), major banks are becoming more cautious and increasing their gold reserves to hedge against potential risks.
Another factor supporting gold prices is the ongoing conflict in the Middle East. Israel's Prime Minister, Benjamin Netanyahu, has indicated to the US that they are ready to take action against Iran. However, for now, it seems they are avoiding direct attacks on oil and nuclear infrastructure.
Market trend: Gold is in a long-term uptrend, aiming for that historical high of 2685.00. If this resistance is broken, we could see prices climb further, with targets at 2750.00 and 2810.00.
On the flip side, if there’s a pullback to the 2602.00 support level, it still makes sense to consider buying with a target of 2685.00. However, if 2602.00 is breached, we might enter a longer correction, with gold potentially dropping to 2546.00 and even 2471.00.
In the short term, gold continues its upward trajectory, despite a slight correction last week. The price didn’t test the support zone between 2575.61–2564.61 and instead reversed upwards, heading towards the high of 2685.61 and aiming for the 2712.70–2701.70 zone. If it reaches this area, we could see another correction before gold resumes its climb towards 2625.00 and 2685.00.
Key Levels to Watch
- Resistances: 2685.00, 2750.00, 2810.00
- Supports: 2602.00, 2546.00, 2471.00
Trading Strategy
Buy: If the price breaks 2685.00, it could be worth opening long positions with a target of 2750.00, and a stop loss at 2664.00. The expected timeframe for this play is between 9 and 12 days.
Sell: If the price drops below 2602.00, consider selling with a target of 2546.00 and a stop loss at 2628.00.