Gold prices have been on a tear these days thanks to all that market uncertainty.
Is it high time for a correction soon?
Better keep your eyes on these potential support zones in case the precious metal goes for a dip!
Gold (XAU/USD) 4-hour Chart by TradingView
Safe-haven flows seem to be in full swing these days, as investors remain wary of geopolitical tensions in the Middle East, lackluster stimulus announcements from China, and U.S. election uncertainty.
With that, it’s no surprise that gold has been setting one record high after another, busting past the $2,700 area and onto the latest peak at $2,752.09 near R1.
Can the precious metal go further north from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the gold and market sentiment, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
If resistance at the current highs keeps holding, XAU/USD could retreat to the nearby Fibonacci retracement levels to draw more buying interest.
The 38.2% level lines up with the pivot point ($2,694.21) while the 61.8% Fib is closer to a former resistance zone, as well as the long-term rising trend line that’s been connecting lows since July this year.
Just stay on your toes for another potential surge in risk-off flows, which could take gold past the latest highs and onto fresh ones at R2 ($2,778.76) and beyond.
Don’t forget to keep tabs on this week’s set of top-tier news events, as well as any headlines that could impact market sentiment, when taking any trades.