Spot gold took a breather after making record highs near $2,940 last week.
Is the yellow metal ready to extend its uptrend?
We’re taking a closer look at the 4-hour time frame for clues!
Gold (XAU/USD) 4-hour Chart by TradingView
In case you missed it, gold gave back some of its gains on Friday after optimism over the Russia-Ukraine peace talks eased geopolitical jitters and improved overall risk sentiment.
XAU/USD bounced lower from its $2,940 previous highs and hit $2,880 before finding sustained support.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Gold looks ready to extend its longer-term trend as it hangs out above the $2,880 area of interest and Pivot Point line ($2,895) in the 4-hour time frame.
Look out for a few more green candlesticks and sustained trading above $2,900, which could draw in more bullish demand and push XAU/USD back to its $2,940 previous highs if not fresh record highs.
But if XAU/USD starts poppin’ up red candlesticks, or if the pair looks like it’s ready to consistently trade below the trend line and Pivot Point support, then you can also prepare for more downside action for the safe haven.
In case of more downswings, look out for a possible move to the S1 ($2,848) Pivot Point line or the $2,820 previous area of interest.
Whichever bias you choose to trade, don’t forget to keep tabs on this week’s set of top-tier news events, as well as any headlines that could impact market sentiment, when taking any trades.
