Spot gold consolidates near a major inflection point!
Will it lead to a bullish or bearish breakout?
The daily chart may hold some clues!
Spot gold (XAU/USD): daily Planned by TV
As you can see, spot gold (XAU/USD) is having trouble picking a direction as it consolidates between $1940 and $1960 areas on the daily time frame.
Coincidentally, the consolidation zone lines up with a trend line support that has not been broken since November 2022.
Not only that, but it’s also not too far away from the 100 SMA and 50% Fibonacci support on the daily timeframe.
Are we looking at a break-up in the making?
Buying at current levels or the first signs of an upward breach may result in a good risk ratio, especially if the precious metal returns to its previous highs near $2060.
If you prefer to sell gold in favor of the US dollar, you will want to do so after XAU/USD breaks below the trend line support that we are watching.
Whichever direction you choose to trade, make sure you follow a trading plan and practice your best risk management moves!