Uncertainty in Gold: Is a New Leg of Correction on the Horizon?

Oct 3

Yesterday, XAUUSD exhibited significant volatility, with sharp fluctuations both upward and downward. However, by the close of the session, the price remained relatively unchanged, lacking a clear directional trend. The current price movement suggests a phase of consolidation, indicating that a more definitive direction may emerge soon.

Traders are now observing key levels that could guide future moves. On the upside, the 2663-2665 zone is seen as a resistance level, which could signal a bullish breakout if breached. Conversely, the 2645-2650 range serves as a support zone, indicating a potential bearish move if the price falls below this level.

From a personal perspective, I anticipate that gold might break to the downside, leading to a new corrective phase that could potentially drive the price toward the 2600 level.

That said, this is merely my view, and there is always the possibility of being wrong. Therefore, my invalidation point for this bearish scenario would be a break above the established resistance zone, which would signal the need to reassess the situation.

In conclusion, while the market remains in a state of indecision, these key levels provide traders with important reference points to monitor for potential breakouts or reversals in the near future.

Oct 3

Trade active

Selling pressure is growing as expected.
XauUsd has broken under the rising trend line and now is facing horizontal support given by yesterday's lows.
A break here opens the door for 2625 recent low.
I remain short for now

Oct 3

Trade closed manually

I closed my trade on break even
The price tried to break support all day and failed.
Also, on the daily chart it looks like we will face a double Pin Bar which is pretty bullish.

tradingview.com/chart/DsYWrPzn/