Chart of the day

Where do we stand fundamentally?

The XAU/USD pair (gold versus the U.S. dollar) has been experiencing strong volatility, reaching near-record highs around $2,735 per ounce recently. This rise aligns with broader market reactions to geopolitical tensions and ongoing concerns over inflation, which have driven investors toward safer assets like gold. The precious metal continues to trade in a bullish trend, with analysts suggesting that further U.S. economic data releases, particularly around inflation and Federal Reserve decisions, could maintain or alter this trend in the coming weeks​.

XAUUSD has broken above 2680 and is extending higher in the fifth wave for a possible target of 2900. We need confirmation of an extension of the mentioned level for an upside continuation in the uptrend fifth Elliott Wave to 2900. Invalidation of this immediate upside extension could come upon a break below 2680.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 2450 meaning we are in the strong bull uptrend. As said the continuation of a retest extension could lead to a 2900 target in the medium-term to long-term if the XAUUSD sustains a breakout above 2680 which is being retested.

_{Try a long trade entry with a stop loss below 2660 to target 2900 and higher.}