Gold trades above $2,500 as 50 bps rate cut bets lessen
Technical Analysis: In the middle of the range, holding at around $2,500
Gold (XAU/USD) continues trading in a sideways range between the all-time highs of $2,531 and a floor at around the $2,475 level. It is currently exchanging hands more or less in the middle of that range.
The yellow metal will probably continue trading up and down within this range until it breaks decisively out of one side or another.
A decisive break would be one accompanied by a long green or red candle that broke clearly through the top or bottom of the range and then closed near its highs or lows, or three candles in a row of the same color that pierced through the level.
Gold’s longer-term trend is bullish, however, slightly enhancing the odds of an upside breakout. Gold has an as-yet unreached bullish target at $2,550, generated after the original breakout from the July-August range on August 14. It will probably finally reach its goal in the end, assuming the uptrend survives.
A break above the August 20 all-time high of $2,531 would provide more confirmation of a continuation higher toward the $2,550 target.
If Gold continues steadily weakening, however, a decisive break below the range floor and a close below $2,460 would change the picture and suggest that the commodity might be starting a more pronounced downtrend.
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