XAU/USD: Anticipating a Correction Around $2,700
Gold is trading sideways near the $2,700 level following a decline from its recent peak near $2,724. This reflects hesitation among buyers and sellers as they await clearer market signals. The slight recovery in the US dollar toward the end of the week has pressured gold prices, slowing its bullish momentum.
The daily chart highlights the $2,703–$2,724 zone as a key resistance level. If the price fails to break above this range, a correction toward the major support zone at $2,601 is likely. This level aligns with the convergence of the EMA 34 ($2,657) and EMA 89 ($2,622), providing strong technical support for the broader trend.
A potential strategy involves selling near the resistance zone of $2,703–$2,724, targeting a decline to $2,657 and then $2,601. A stop-loss above $2,730 is recommended to guard against unexpected bullish movements. Conversely, if the price approaches $2,601, it could serve as a buying opportunity with targets at $2,700 and $2,724, and a stop-loss below $2,590.
With no major economic announcements on the horizon, price action around the critical levels of $2,724 and $2,601 will likely dictate the future direction of XAU/USD. Close monitoring and quick adjustments to market signals will be key to seizing trading opportunities.
The daily chart highlights the $2,703–$2,724 zone as a key resistance level. If the price fails to break above this range, a correction toward the major support zone at $2,601 is likely. This level aligns with the convergence of the EMA 34 ($2,657) and EMA 89 ($2,622), providing strong technical support for the broader trend.
A potential strategy involves selling near the resistance zone of $2,703–$2,724, targeting a decline to $2,657 and then $2,601. A stop-loss above $2,730 is recommended to guard against unexpected bullish movements. Conversely, if the price approaches $2,601, it could serve as a buying opportunity with targets at $2,700 and $2,724, and a stop-loss below $2,590.
With no major economic announcements on the horizon, price action around the critical levels of $2,724 and $2,601 will likely dictate the future direction of XAU/USD. Close monitoring and quick adjustments to market signals will be key to seizing trading opportunities.
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