I’ve been on this for a while now with the latest post yesterday here: Gold extends rebound for a fourth day running
Gold (XAU/USD) daily chart
It’s been a rather straightforward rebound since testing the 100-day moving average (red line) for gold. That sees price run up to $2,031 as buyers look to keep the bounce going. The next key level to watch will be the trendline resistance closer to $2,051 currently.
Not much has changed from yesterday but this has been one of the more interesting charts in trading this week. As such, do keep the following consideration in mind as gold looks to track higher for the time being:
“The rebound off the 100-day moving average has been a textbook trade for chartists. But there is a potential pattern forming which is showing lower highs and lower lows. That could come back to bite at gold for a bit before we can really talk about a major breakout to $2,100 and beyond again.”