Gold Price Forecast: XAU/USD bulls got free drinks on the house

Gold Price Forecast: XAU/USD bulls got free drinks on the house, but hangovers could await them. As illustrated, the price has run up to the 61.8% golden ratio where some profit taking would be expected to occur. A build-up of supply could pick up over the course of the coming days and weeks ahead resulting in a topping of this correction of the M-formation's bearish leg. Ultimately, prop traders are still holding a massive amount of complacent length. This leaves scope for more downside. The pain trade remains to the downside, but prices may be able to trade higher before macro headwinds weigh on the yellow metal once more. So, keeping a stop above 78.6% would be prudent. But we need to see structure break to the downside still. So a sell limit might be the way to go in such a scenario.