Navigating Supply and Demand Zones | Forex | XAUUSD

The current gold price is navigating a crucial range between the supply and demand zones of 2505 and 2490. This range is significant for traders as it dictates potential market movements and trading strategies. If the price maintains within this zone, traders should be cautious of the next movements.

Upside Potential:

Should the bulls successfully maintain the price above the 2481 - 2476 support area, it presents a promising opportunity for long positions. The immediate targets in such a scenario would be 2504 and 2531. These levels represent potential resistance zones where the price may face challenges, but breaking through could lead to further gains.

Downside Risks:

Conversely, if the gold price breaches the 2490 support level, this could signal the start of a corrective phase. In this case, the price might test the next support range of 2452 - 2445, which aligns with the trend's lower boundary. Traders should consider short positions until the price reaches this zone. Once the price stabilizes around this area, it may offer another opportunity for long trades as the market finds its footing.

Key Trading Strategy:

 Long Trades: Consider entering long positions if the price holds above 2481 - 2476 with targets at 2504 and 2531.

Short Trades: If the price breaks below 2490, short positions could be viable until the price approaches the 2452 - 2445 support zone.

Summary: The gold market is currently in a critical phase, balancing between supply and demand zones at 2505 and 2490. Traders should be vigilant, as a breach of these levels could determine the market's next direction. The price action around these zones will be crucial for identifying potential long or short trade opportunities.