Last week we wrote about the XAUUSD price action resuming its bullish trend. Price traded at an important resistance level. Today we see that the gold has broken the resistance level and shows bullish pull price action. Get previous analysis here for proper understanding . https://fxsits.com/gold-buyers-push-market-higher-to-resume-bullish-trends/
At the time of this writing the XAUUSD (gold) price action was trading above its previous resistance level. This same level has now become our support at the $1845 mark. Below it the previous resistance level at $1873.Since then price has rallied about $25 up. The recent resistance level has become our support for now. If price does retrace to level 1845 where our new support is and doesn’t hold. Then level 1820 will be our next support for the gold. However if price continues to move bullish and break past the resistance level 1873 then we may see gold trade to its new higher high.
Due to inflation fears the XAUUSD (gold) price action always act as a hedge over the inflation. Because of too much money is being pump into the economy. People are having too much in their pockets to spend. This the economy is over heated and will soon burst .We at FXsits hold a long bullish belief the Gold in the upcoming months . There is an inflation fear at the moment.
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