XAUUSD suffered a significant loss last Tuesday.
At more than five percent, it was the largest single-day drop in the last few years.
Even the March selloff didn’t register a loss that significant, at least not at the daily close.
However, I don’t see any scenario where XAUUSD becomes a sell, at least not in the long run.
The uptrend is intact as is the cyclical bull market that I’ve been discussing for weeks.
XAUUSD monthly chart showing uptrend
If you look at 45y chart you will know what im saying.
The consolidation between 2011 and 2019 formed a continuation pattern within a broader bull market for gold.
But every bull market has pullbacks.
And the more aggressive the uptrend is, the more unnerving the pullbacks are likely to be.
Look no further than the August 11th candle.
Countertrend moves like that are a necessary evil to shake out any “weak hands” and reset the momentum.
I’m not saying that the pullback is over, but I am still long gold.
As for the short-term, we have to keep an eye on how 1940 holds as support going forward.
However, 2075 is going to be the big level on everyone’s mind now.
As long as gold is below that level on a daily closing basis, expect this consolidation to continue.
At more than five percent, it was the largest single-day drop in the last few years.
Even the March selloff didn’t register a loss that significant, at least not at the daily close.
However, I don’t see any scenario where XAUUSD becomes a sell, at least not in the long run.
The uptrend is intact as is the cyclical bull market that I’ve been discussing for weeks.
XAUUSD monthly chart showing uptrend
If you look at 45y chart you will know what im saying.
The consolidation between 2011 and 2019 formed a continuation pattern within a broader bull market for gold.
But every bull market has pullbacks.
And the more aggressive the uptrend is, the more unnerving the pullbacks are likely to be.
Look no further than the August 11th candle.
Countertrend moves like that are a necessary evil to shake out any “weak hands” and reset the momentum.
I’m not saying that the pullback is over, but I am still long gold.
As for the short-term, we have to keep an eye on how 1940 holds as support going forward.
However, 2075 is going to be the big level on everyone’s mind now.
As long as gold is below that level on a daily closing basis, expect this consolidation to continue.
