Chart of the day

Where do we stand fundamentally?

Metals have gone higher in the past months and they have opened a correction lower after and they are still in the strong uptrend cycle indicating a bullish continuation higher. Demand for Gold is not lower and also the production capacities are not so high.

XAUUSD is consolidating after reaching the high of 2430 in the fourth wave pullback of the short-term five waves. That would be the fifth wave of the long-term fifth. It should hold the 2280 level of support to avoid the deeper correction.

Support for an upside extension and a test of 2430 again is 2280 and an invalidation level of a fifth wave extension higher is 2080. Only a confirmed break above 2430 after the bounce from 2280 is required for a continuation higher.

_{Try with a long trade entry first with a stop loss below 2280.}

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