XAUUSD: Gold Prices Might Be Preparing For Next Bull Run
Gold prices added to their gains in the Asian session, and the price bounced as projected from around the $1404 level as I mentioned in my update on Gold on June 25 when gold prices were trading at $1426.
In the Asian session, the price reached as high as $1424, but further gains are needed before I suspect traders will be willing to raise the trend defining level from the $1375 level.
If the price manages to take out the current yearly high at $1438.98, I think it would be fair to assume that traders will reduce the trend defining level to the June 27 low at $1398, as a break to the $1438.98 high would make a June 27 low a more significant swing low.
Until the price trades higher I will maintain the $1375 level as the true short-term trend defining level, and I will assume that the price will trade sideways between the $1375 and YTD high, with an underlying bullish bias, causing traders to buy around the $1400 level. If the $1400 level does not hold, I suspect traders will emerge around 1390 level as it is the 78.60% Fibonacci correction level of the rally from 1376 to $1438.98.Don’t miss a beat! Follow us on Twitter.