Spot gold is consolidating near a key inflection point!
Will it lead to a bullish or bearish breakout?
The daily chart may have some clues!
Spot Gold (XAU/USD): Daily Chart by TV
As you can see, spot gold (XAU/USD) is having trouble picking a direction as it consolidates between the $1,940 – $1,960 areas on the daily time frame.
Coincidentally, the consolidation zone lines up with a trend line support that hasn’t been broken since November 2022.
Not only that, but it’s also not too far from the 100 SMA and 50% Fibonacci support on the daily time frame.
Are we looking at an upside breakout in the making?
Buying at current levels or the first signs of a bullish breakout would yield a nice risk ratio especially if the precious metal revisits its previous highs near $2,060.
If you’d rather short gold in favor of the U.S. dollar, however, then you’ll want to do it after XAU/USD breaks below the trend line support that we’re watching.
Whichever direction you choose to trade, make sure you’re following a trading plan and that you’re practicing your best risk management moves!
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