Gold prices have been on a tear these days thanks to all the uncertainty in the market.
Is it time for a correction soon?
Better keep an eye on these potential support areas in case the precious metal declines!
Gold (XAU/USD) 4-Hour Frame Chart by TradingView
Flows into safe havens appear to be in full swing these days, as investors remain wary of geopolitical tensions in the Middle East, lackluster stimulus announcements from China, and uncertainty over the US election.
However, it is no surprise that gold posted one record high after another, crossing the $2,700 area and reaching a recent peak of $2,752.09 near R1.
Could the precious metal go north from here?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on gold and market sentiment yet, it’s time to check the economic calendar and stay up to date with daily fundamental news!
If resistance at current highs persists, XAU/USD may pull back to nearby Fibonacci retracement levels to attract further buying interest.
The 38.2% level is in line with the pivot point ($2,694.21) while the 61.8% Fibonacci level is closer to the previous resistance area, as well as the long-term uptrend line connecting the lows since July of this year.
Just stay alert for another potential spike in risk-off flows, which could push gold past its recent highs and to new levels at R2 ($2,778.76) and beyond.
Don’t forget to keep an eye on this week’s lineup of high-level news events, as well as any headlines that could impact market sentiment, when making any trades.