GOLD.18/05: Prosperity for buyers

18 may 2023

GOLD Gold (XAU/USD) prices wound up at a three-week low, raising bids to print a slight gain around $80 in the early hours of today's Asian session. In doing so, the XAU/USD bears will get some steam after falling for the past two consecutive days due to the lack of key data/events. Even so, expectations about the US being able to ease its debt limit and join the US Federal Reserve's (Fed) negotiations are putting pressure on Gold prices.
Accordingly, the yellow precious metal could drop to the 50% Fibonacci retracement level of the March-May rally, around $1,950, before testing the 100-DMA support at $1,930 and the Fibonacci ratio gold, 61.8% mark, about 1,915$
In case Gold price still falls past $1915, the possibility of witnessing a drop in XAU/USD cannot be ruled out.
Additionally, the Gold price rally needs to sustain beyond the bottom of the stated triangle $2000, quickly followed by a circular resistance at $2,010.
Even so, the 23.6% Fibonacci retracement level and the top of the aforementioned triangle near $2,020 and $2,055 respectively will be in the spotlight.



BUY GOLD 1984 - 1983

StopLoss: 1980
Take Profit 1: 1989
Take Profit 2: 1994
Take Profit 3: 2000