XAU/USD: The Upside Prevails?

Looking at the bigger picture, Gold looks like it found strong support at $1,680 after forming a double bottom formation, and not breaking the $1,680 level gave us a bullish signal towards new highs for this year. For now, XAU/USD finished wave iii of 3 and I expect to see a small retracement for wave iv of 3 before continuing its way up for wave v to complete wave 3. After reaching wave 3, I also expect another retracement for wave 4 towards $1,783 before resuming its way up for wave 5.

Our first target for wave 5 is the 61.8% Fibonacci Extension level at ($1,835). Breaking the 61.8% could push gold towards the 100% and the 161.8% Fibonacci levels to record the new highs for this year.

Breaking below $1,750, we will start thinking of selling gold instead of buying.