Gold (XAU) tried to rally last week but rolled over to form up a shooting star pattern.
That said, prudence says, “take extreme caution when it comes to this market”, as we have seen a couple of shooting stars. It can well be negative signal, and almost always means that the price is about to rollover.
I do not see a drastic sell-off, but we a pullback to the major support underneath is at 1384 to 1382 that will attract new buying for a run at the resistance at 1445, 1450 then higher,
Gold Outlook Video 08.07.19
The longer-term chart indicates that the Key support is at 1350, it is also a psychologically significant number but it is also an area where we have seen support and resistance before.
Plus, we have the 50% Fibo retracement mark there, so at this point it is very likely that the buyers will return on the Fibo retraces.
The USD does look soft too, the Gold market is overbought and that is probably the biggest driver to the Southside in here. I believe that value hunters will come back into this market looking to pick up gold the Southside marks, but if it regroups and break above the 1450, the market would enter a huge Bullish move into a blow off Top.
Do not see a short in gold now, just want to find a better price at lower price it looks very likely. So be patient in here.
Have a terrific week