With a strong up move in the yesterday U.S. trading session , XAUUSD has broken up its psychological price zone at $ 1,497.50 USD/ounce spot price and led the price action to trade above $1,500.00 USD/ounce spot price currently. In our technical point of view but Gold is still in a bearish mode for a further correction to its lower price zone in the coming days. On the depicted chart as we see that the monthly high value area has been formed for XAUUSD sport price at around $1,503.20 USD/ounce with lower highs and also lower lows. The price pattern is still in a form of distributed mode and can be led southward sharply. The lower price zone for a continuing bearish scenario as updated in our previous posts about Gold, will probably be at $1,430.xx USD/ounce. To fulfil that lower price zone, some conditions in its price actions have to be signalized as following:
There must be further rejections at $1,516.xx USD/ounce, the monthly candle of October has to be closed below the $1,500.00 USD/ounce handle, and finally during the upcoming trading days, the price handle at $1,488.40 USD/ounce needs to be broken down, then $1,450.xx USD/ounce will not be faraway to reach.
For a bullish scenario for Gold it is of course not excluded, but to be in a bullish mode, XAUUSD firstly needs to be traded above $1,524.xx USD/ounce; forming there its further pattern for a higher lows at H4 TF at least, then a sentiment for further up moves are confirmed.
We will keep monitoring about Gold in the upcoming posts.