The precious metal is testing an area of long-term interest and may consider moving higher!
Could it hit the next ceiling at $2,400 from here?
Take a look at the inflection points I'm watching for gold:
Gold (XAU/USD) 1 hour Chart by TradingView
Weaker-than-expected US jobless claims led to a sharp decline in the value of the US dollar on the “quietest day of the year” for global markets.
As you can see, European markets were closed for the Ascension Day holiday, resulting in weaker liquidity and sharper price interactions between asset classes.
Keep in mind that the US currency is already on its feet, after last Friday's disappointing non-farm payrolls report and revived expectations of three Fed rate cuts this year.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial homework on gold and the US dollar yet, it's time to check the economic calendar and stay up to date with daily essential news!
Another set of downbeat US numbers could be enough to trigger a bullish breakout from the XAU/USD interest zone, as a move past $2,350 could pave the way for a rise to the next major resistance near $2,400 and R3.
The 100 SMA has crossed above the 200 SMA, so the path of least resistance is to the upside. Be sure to look for potential selling action at the nearby R2 level ($2,378.15) as well.
the The United States has its preliminary consumer confidence index from the University of Michigan Coming, so another decline in confidence could mean a new decline for the dollar. On the other hand, strong data may push the XAU/USD pair back to the support areas at the pivot point level ($2,308.66) or range support.
Whichever trend you choose to trade, make sure you stick to your risk management plan and that you keep a close eye on any major headlines that may impact the gold price movement!
