Overview of Gold Price (XAU/USD) & Potential Up Move
While the price of gold (xau/usd) continues to correct its June-August price run, the long term chart (see below weekly time frame) shows potential for a major price bounce from current price level (1,450).
Gold traded at a range throughout the week and XAUUSD prices stayed approximately unchanged during the last three trading days. Looking at the chart we can see that gold is trading above the 200 day moving average (40 averages on the weekly chart below) and the volume pattern shows buyers are more aggressive than sellers. In addition, the price of gold has stayed in an upward channel this year, trading between support and resistance channel. Considering the above, gold has a great potential for a price bounce up from the current $1,450 zone.