The main range is $3,886.46 to $5,602.23. Its retracement zone is $4,744.35 to $4,427.82. Spot Gold (XAUUSD) has been trading inside this zone for eight weeks. Stripping away all the short-term noise, the tone is neutral inside the retracement zone, bullish over $4,744.35 and bearish under $4,401.82.
The minor range is $4,099.12 to $4,891.54. Its retracement zone is $4,495.33 to $4,401.82. Last week’s close at $4,501.01 came close to testing the support zone. This suggests traders are being passive and buying dips.
The intermediate range is $5,419.66 to $4,099.12. Its retracement zone at $4,850.68 to $5,028.04 is resistance. It stopped the rally at $4,891.54 the week ending April 17.
If buyers can build on last week’s upside momentum, there is a chance of a sustained breakout over $4,744.35. This move will target $4,850.68 to $5,028.04.
If buyers don’t show up at $4,744.35 and sellers dominate, look for a retest of the support cluster formed by the short-term retracement zone at $4,495.33 to $4,401.82 and the long-term 61.8% level at $4,427.82. New buyers can re-emerge on a retest of this area.
Since the main trend is up, we’re still in buy the dip mode. But in order to generate strong upside action, buyers are going to need to start taking out offers. Until that happens, expect more neutral to rangebound trading.
