The precious metal Gold, represented by the XAU/USD pair, remains in an uptrend that commenced from the 1810 level. The recent pullback from the 2431 high is likely a consolidation phase within this broader uptrend.
Over the next several weeks, the XAU/USD is expected to trade within a range, oscillating between the 2200 and 2431 levels. This range-bound movement could provide opportunities for traders to capitalize on the fluctuations within these boundaries.
As long as the 2200 support level holds firm, the overall bias remains skewed towards the upside. In this scenario, the upside move could potentially resume, paving the way for further gains towards the 2500 level after the current consolidation phase concludes.
However, traders should also remain vigilant for potential downside risks. A breakdown below the crucial 2200 support level could potentially indicate that a lengthier consolidation phase is underway for the uptrend.
In the event of such a bearish development, the XAU/USD could potentially find support around the 2000 level, which could act as a significant target for the bears.
It’s important to note that the precious metal market is known for its volatility and sensitivity to various economic and geopolitical factors. Traders and investors should closely monitor these factors and adapt their strategies accordingly.
In summary, the XAU/USD remains in an uptrend from the 1810 level, with the recent pullback from 2431 being viewed as a consolidation phase. Range trading between 2200 and 2431 is anticipated over the next several weeks. As long as the 2200 support holds, the uptrend could potentially resume, with the 2500 level serving as the next target for the bulls. However, a breakdown below 2200 could signal a lengthier consolidation, potentially leading to a retest of the 2000 support level.