Gold ends the trading week near the 1766 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 1715 area. Further, the continued growth of the Gold price with a potential target above the level of 2105.
Gold trading forecast for the week of May 3-7, 2021
An additional signal in favor of the rise in quotations and prices for Gold in the current trading week of May 3-7, 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 1585 area. This will indicate the breakdown of the support level and the continuation of the fall in Gold prices with a goal below the level of 1465. 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 1855, which will indicate the breakdown of the upper limit of the descending channel, which will also indicate the completion of the downward correction.
Gold trading forecast for the week of May 3-7, 2021
Thus, Gold forecast for the week of May 3-7, 2021 suggests an attempt to test the support level near the area of 1715. Then, the continuation of the growth of Gold prices with a target above the level of 2105. 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 1585. This will indicate a continuation of the decline in quotations in the area below the level of 1465.