Where to Buy Gold, Aiming for A New Record High this Week!
XAU failed to reach the all-time high last week, but we are waiting for the price to retrace lower in order to buy Gold, once we get the buy signal from the price action.
Gold gained $100 last week and almost reached the previous record high last week, which was set at the end of October at $2,790, but buyers got cold feet ahead of the market close on Friday, so the Gold price retreated and closed $15 lower. Gold has been on a strong bullish trend since October 2023, increasing by around $1,000 until the end of October 2024, as the demand for physical Gold grows, while global political and economic uncertainties also help keep Gold futures in demand.
Gold Chart Daily – A New Record High Likely This Week
However, after placing a new record high at the end of October 2024, Gold went through a steep retreat, which sent he price more than $250 lower to $2,536 by the middle of November. The decline stalled there and Gold buyers returned, sending the price above $2,700, however, a resistance zone formed above $2,720, which rejected the price twice.
Nonetheless, buyers returned this month and pushed the price above the price ab0ve the 100 SMA (green) on the daily chart above. After a dip on Thursday morning, GOLD buyers returned. A declining dollar as a result of U.S. President Donald Trump’s remarks on interest rates and his silence on tariffs so far apart from Colombia, boosted demand for the precious metal.
Gold Chart H4 – Will the 20 SMA Hold Again?
Following Trump’s remarks, market has the feeling that upcoming tariffs could be less severe and more widespread than initially expected, so the market sentiment shifted away from the US dollar. This shift boosted Gold’s appeal as a hedge against inflation, easing concerns about a potential global trade conflict and redirecting focus toward inflationary risks. In either case, Gold will still be in demand, either from a weaker Dollar in case of lower tariffs, of as a safe haven in case of high tariffs.
Therefore, we are looking to open a buy Gold signal as the rice retraces lower. Moving averages have been a solid support indicator this month, so we are looking to buy Gold at the 20 SMA (gray) on the H4 chart. That moving average comes around $2,750 and the price will be oversold by then on this timeframe, so we are waiting for XAU to retrace down there. If we get a signal from the price action such as a doji or pin candlestick, then we will open a Gold trade.
Gold Live Chart
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