Chart of the day

Where do we stand fundamentally?

Recent geopolitical developments, like the ceasefire between Israel and Lebanon, have influenced gold prices by reducing haven demand. President-elect Donald Trump's appointment of Scott Bessent as US Treasury Secretary has also been seen as influencing market dynamics.

Due to recent drops, the short-term outlook for gold is cautious, yet some analysts see the potential for gold to rise to $3,000 in the slightly longer term, indicating a complex market environment.

XAUUSD is breaking below 2635, which could be the start of a pullback after the fifth short-term wave peak has been set. A pullback in the five waves from here to 2200. This is the possible reversal point in the short term. My KNOWPO trading system indicates a good low-risk short trade here, so I expect a reversal downside (outlined blue waves representing the short-term cycle).

This is also a support of the upside channel. A break above 2635 again will invalidate the downside reversal and lead to a retest of 2800. XAUUSD accelerated higher strongly but the rally is showing signs of a healthy pullback incoming.

_{You can take a short trade entry with a stop loss above 110000 to target 84000.}