Weekly Trade Idea: Gold Moves into Range, Bias Remains Mixed

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The precious metal is likely to emerge from its sideways range. The consolidation since April 14th saw prices trading flat.

Following the previous highs near 1726.18, gold prices pulled back to April 21 lows of 1683.20. Gold prices briefly retested this level on Friday to close slightly bullish.

Unless we see a breakout above 1726.18, the precious metal is at risk of a downside breakout.

However, a lot will depend on how prices emerge from this sideways range. To the upside, the price level of 1800 remains the next key psychological target. Alternately, the downside breakout could see gold prices falling to the 1630 level of support.

Most of the flows in XAUUSD will be determined by the economic data coming out of the US, namely Friday’s payrolls report.

With the outlook being grim, there is a slight chance that gold prices could be aiming higher into this Friday’s close.

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