Gold Technical Price Outlook: XAU/USD Weekly Trade Levels
Gold prices surged more than 2% since the Sunday open with XAU/USD rallying into uptrend resistance early in the week- the immediate focus is on a reaction at this threshold with the long-bias vulnerable near-term while below. These are the updated targets and invalidation levels that matter on the gold weekly chart. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this XAU/USD trade setup and more.
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Gold Price Chart – XAU/USD Weekly
Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview
Notes: In my last Gold Weekly PriceOutlook we noted that, “we’re on the lookout for signs of an exhaustion low to stage a larger recovery,” as price was responding to critical Fibonacci support confluence at 1447/52 (low registered at 1451). Gold rallied more than 15% off the lows with the advance testing key near-term resistance this week at the yearly high-close at 1673– the immediate long-bias may be vulnerable while below this threshold.
Initial weekly support rests at 1586 backed closely by the April open at 1574– look for pullbacks to be limited to this threshold IF price is indeed heading higher on this stretch. Broader bullish invalidation now raised to 1522/26. A topside breach / close above 1673 is needed to mark resumption with such a scenario eyeing subsequent resistance objectives at the yearly high at 1703 and the upper parallel / 78.6% retracement at 1733.
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Bottom line: The gold price rally is testing the first major resistance hurdle here at the yearly high-close. From a trading standpoint, the advance remains vulnerable while below this threshold – be on the lookout for possible topside exhaustion here. Ultimately, a larger pullback may offer more favorable entries closer to uptrend support. Review my latest Gold Price Outlook for a closer look at the near-term XAU/USD technical trading levels.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
Gold Trader Sentiment – XAU/USD Price Chart
- A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.89 (74.31% of traders are long) – bearishreading
- Long positions are6.38% lower than yesterday and 6.47% higher from last week
- Short positions are7.91% higher than yesterday and 0.65% higher from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Yet traders are less net-long than yesterday but more net-long from last week and the combination of current positioning and recent changes gives us a further mixed Gold trading bias from a sentiment standpoint.
Data provided by
of clients are net long.
of clients are net short.
Previous Weekly Technical Charts
– Written by Michael Boutros, Currency Strategist with DailyFX
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