Heads up, gold bugs!

The valuable metallic landed again above the important thing $2,000 degree, hinting that the tide is popping again in favor of bulls.

To high it off, I’m seeing a bullish flag sample, pointing to a continuation of the upside transfer.

Simply how excessive can XAU/USD go from right here?

Gold (XAU/USD) 1-hour Chart by TV

The flag’s mast spans round $1,980 to $2,020 which signifies that an upside breakout may spur a rally of the identical top. That ought to take gold as much as round $2,060 or greater.

Nevertheless, I’m additionally seeing a close-by barrier finally month’s highs close to $2,045, so we’d see a little bit of resistance proper there.

Don’t overlook that Stochastic is already indicating overbought situations or exhaustion amongst patrons, which may result in profit-taking fairly quickly.

In the meantime, transferring averages are oscillating for now, nevertheless it seems just like the 100 SMA is making an attempt one other bullish crossover.

Issues aren’t wanting so good for the U.S. greenback proper now for the reason that upcoming FOMC resolution is predicted to trace at a tightening pause afterward whereas Friday’s NFP launch would possibly lastly verify a slowdown within the jobs market.

These would possibly spotlight the safe-haven attraction of gold, particularly if risk-off flows prolong their keep within the monetary markets. In any case, U.S. banking sector troubles aren’t doing the scrilla any favors proper now, too!

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