Gold XAU/USD at a Critical Turning Point
Gold price traded within a range during the last trading session, closing the day on the lower-end, at the important $1,700 price level. That price level has been important this month as it is a nice round psychological number, which buyers and sellers fighting for control at that level. Price has been fluctuating very tidily +/- 50 points around 1,700. Once price break above/below that trading range, we should get better directional move in gold price. Looking at the chart, we can see that we are still in a long term uptrend with price trading above rising 50 and 200 day moving averages (red and green lines on chart), that should provide support in case price breaking below current trading range. On the upside, a break and close above the 1,725 level should send gold price to the important historical $1,800 – 1,900 price level. On the downside, a break below 1,650 can send gold price to test long term trend line support level at $1,600.