By Admiral Markets

Given that European, US and Japanese Equities markets have experienced some risk-off as most markets are at multi-year and all-time highs; we have seen some buying of Gold, the safe-haven precious metals recently. At this point the Gold spot shows a rounded bottom and we might see a spike from POC zone and a continuation above W H5. The POC zone ( W H4, EMA89, atr pivot) should spike the price up on a subsequent retest towards the W H5 1288.35. 4h close above the pivot should aim for M H4 – 1295.80 and possibly 1306.05 where a u-turn on rounded bottom will be complete.. Only a strong momentum above 1310.00 should follow up with 1.1316 target.

For this scenario to succeed the price must remain above the W L3 1264.52 else a break below will probably make a bearish move towards W L5 -1250.94. So at this point buying the dips looks like a possible way to go.

W L3 – Weekly Camarilla Pivot (Weekly Interim Support)

W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)

W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)

M H4 – Monthly Camarilla Pivot (Very Strong Monthly Resistance)

M L3 –Monthly Camarilla Pivot Monthly Support)

M L4 – Monthly H4 Camarilla (Very Strong Monthly Support)

POC – Point Of Confluence (The zone where we expect price to react aka entry zone)

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Article by Admiral Markets

Source: XAU/USD Analysis: Gold Spot Shows Rounded Bottom for a Possible Continuation

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