Chart of the day

Where do we stand fundamentally?

The XAU/USD (gold vs. U.S. dollar) has shown strong performance in 2024, driven by geopolitical tensions, inflation concerns, and anticipation of a Federal Reserve policy shift. Currently, gold prices are hovering near $2,700, close to record highs. While sellers have initiated pullbacks, the broader trend remains bullish, supported by expectations of a softer U.S. dollar and potential Fed rate cuts in 2024. Analysts are watching key resistance levels closely as gold attempts to sustain gains above $3,000, a psychological milestone

XAUUSD is breaking above the 2690. We need a confirmation of a breakout here for an extension higher in the fifth uptrend Elliott Wave to 2800. Invalidation of this immediate upside extension could come upon a break below 2660.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 2435 meaning we are in the strong bull uptrend. As said the bounce could lead to a 2800 target in the medium-term to long-term if the XAUUSD sustains this break above 2680.

_{Try a long trade entry with a stop loss below 2680 to target 2750 and higher.}