Gold ends the trading week near the 1838 area. XAU/USD quotes continue to move within the framework of growth and the beginning of working out the ”Double Bottom" reversal model. Moving averages indicate the presence of a sideways trend in Gold. Prices broke through the area between the signal lines up, which indicates the pressure from buyers and the potential continuation of the rise. At the moment, we should expect an attempt to develop a price correction and a test of the support level near the 1735 area. Further, the continued growth of the Gold price with a potential target above the level of 2085.
Gold price forecast for the week of May 10-14, 2021
An additional signal in favor of the rise in quotations and prices for Gold in the current trading week of May 10-14, 2021 will be a test of the trend line on the relative strength indicator. The second signal will be a rebound from the lower border of the ascending channel. The cancellation of the growth option for XAU/USD quotes will be a fall and a breakdown of the 1575 area. This will indicate a breakdown of the support level and a continuation of the fall in Gold prices with a goal below the 1505 level. Confirmation of the growth in the value of the asset will be the breakdown of the resistance area and the closing of quotes above the level of 1865, which will indicate the breakdown of the upper limit of the descending channel, which will also indicate the completion of the downward correction.
Gold price forecast for the week of May 10-14, 2021
Thus, the Gold price forecast for the week of May 10-14, 2021 suggests an attempt to test the support level near the area of 1735. Then, the continuation of the growth of Gold prices with a goal above the level of 2085. The trend line test on the relative strength indicator will be in favor of the rise in quotations. The cancellation of the growth option for Gold will be a fall and a breakdown of the level of 1575. This will indicate a continuation of the decline in quotations in the area below the level of 1505.