XAUUSD Sweeps $3290/oz with Zero Corrections!

The precious metal went through the past ATH and is now trading at $3295/oz. We told you about this possible dynamic in our Weekly Market Overview, preferring the through-pullback rise, over the occurred vertical jump. 

Recent trade war escalation triggered this new wave of avid buying, with tech giant Nvidia (#NVDA) announcing it will take $5.5 billion in charges to offset the disruptive effects of the US administration’s limitations to exports of H20 chips to China.

Adding to that, China ordered its airlines not to take any further deliveries of Boeing (#BA), in response to the recent US-led hike on tariffs against it to 145%.

Vertical growth is always a worrying predecessor of stronger pullbacks – the steeper the growth, the more painful the retracement later. We advise caution, when opening XAUUSD positions in the near future, using a dynamic Stop-Loss, when possible.

Of course, this rally could go on until the metal reaches $3400/oz, $4000/oz, or even $5000/oz, but the more it rises without correction, the unhealthier this growth will be. By now, gold has officially left the upward channel it has been following since October 2023. Until a new structure appears – trade the trend with a dynamic SL!

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