Recently, this precious metal has been surging, and I see a chance to profit from a swift drop!
These are the gold support levels that I'm keeping an eye on.
I'm searching for an opportunity to participate in the rally since I've got gold's long-term bullish breakthrough on my radar.
In the hourly time frame, the price of XAU/USD is above an upward trend line that has been stable since the beginning of the month.
The useful Fib tool reveals where more gold bugs can be waiting, and it appears that another test of the support zone is about to take place.
Given that the 50% level coincides with the trend line at $1,960, this may be an excellent place to start a long position. The 61.8% Fib at the $1,950 minor psychological point might be reached by a further decline.
But, buyers already appear to be drawn to the 38.2% mark, and Stochastic is beginning to move upward from the oversold area. There is also a little amount of positive divergence, since the oscillator made lower lows while the price made higher lows.
Moving averages also indicate that the upward trend will continue, with the 100 SMA comfortably above the 200 SMA.
The swing high of $2,010 and beyond might be reached by gold if any of the Fibs hold as a floor.
This may be the case if risk aversion persists in the markets for an extended period of time, especially given that traders are still concerned about the possibility of a financial sector collapse as a result of the recent bank runs.
What is the potential future growth of gold?
