Spot gold chart. After turning lower from just under July’s highs, spot gold is finding some buyers.
Can the precious metal extend its uptrend against the dollar?
Check out what’s up on the 4-hour time frame:
Spot Gold Chart
Earlier this week, spot gold (XAU/USD) got rejected from the $1,980 zone that’s not far from the highs we saw last week.
XAU/USD is now closer to $1,950, which is right around the S1 ($1,942) of the chart’s Pivot Points and the 100 SMA on the 4-hour time frame.
More importantly, XAU/USD seems to be finding support from a trend line that’s been around for most of July.
Will the trend line support hold for another day?
Buying at current levels would yield a good risk ratio especially if the pair pops back up to its July highs and your stops are just under the trend line support.
If you’d rather sell gold or buy the dollar, however, then you’ll want to do it until after XAU/USD decisively breaks below the support zone we’ve marked.
What do you think? Which way will XAU/USD go?