Predicting Gold’s rally: momentum after exhausting buyers at $1,943

December 13, 2023 04:58 AM AEDT | By Invezz

Predicting Gold’s rally: momentum after exhausting buyers at $1,943 — Image source: Invezz

XAU/USD trading strategy

Buy/sell asset: Buy XAU/USD
Entry price: $1,943
Stop loss: $2,039
Leverage: 1x
Take profit 1: $1,960
Take profit 2: $2,000
Take profit 3: $2,039
Timeframe: 1-2 weeks
Maximum profit: 4.9%
Maximum loss: 1%

XAU/USD chart and technical analysis

Last week the price of gold reached an all-time high of $2,148. However, the price dropped back to with the same momentum. The massive rally of gold attracted a large pool of buyers who predicted a further surge after some retracement. However, the price is still dropping and liquidating buyers along the way.

The price will possibly further drop to the $1,943 support and demand area before continuing the rally. Still, a large pool of investors are buying gold as they expect the gold will continue the rally.

I am expecting the price will drop to the $1,943 support level exhausting all potential buyers before continuing the rally. $1,943 is a strong support level and the 0.38 Fibonacci retracement level will possibly hold the price and will push it upward.

Gold fundamental analysis

The price of gold will remain volatile due to high-impact news this week especially the interest rates decision news on the US dollar.

If the interest rates are lowered the price of gold will surge and if the rates are kept unchanged the price of gold will likely further drop.

Gold to US dollar trade idea takeaways

Gold will possibly retrace to the $1,943 support level before continuing the rally.
The price will likely surge to the $2,039 resistance level after the retracement.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:4.9.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post Predicting Gold's rally: momentum after exhausting buyers at $1,943 appeared first on Invezz

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