XAUUSD - Massive Double Tops, Final Support ApproachingAs mentioned in my previous idea I published about Gold, bears are totally in control of the XAUUSD market. As it appears on the price chart, we have entire pandemic and post pandemic period covered in massive double tops. As circumstances have approached to normalcy all around the world, fears of uncontrolled inflation has triggered the response of Feds in terms of drastically increasing interest rates on public debt.
USD is one of the top performing currencies globally today for the last few months (almost since the beginning of war). Metals have taken serious impact from the strengthening USD and exhibiting a strong bearish trend.
As far as chart analysis is concerned, the last nail in the coffin of people holding gold long is the support level of 1680, if this holds, there might be a chance of a bullish revival but if it does not, we are looking at a price of 15xx on gold (target zone 1) and possibly 11xx as target zone 2. It will not rest as long as FEDs do not give it a break on the their Hawkish policies to fight inflation.
As for the trading advice, do not hustle to conclusions around 1680, let the market decide about this level and enter accordingly. However, considering the circumstances, selling is a sure shot on metals. But still wait for the support (1680) to break, as a responsible trader.
