During this year, Gold (XAUUSD) soared 16.85% (YTD). Despite the trade war fear, we envision a limited upside from the golden metal for the coming days.
The fifth extended and the commitment
The price action structure suggests that XAUUSD is facing a fifth extended wave. The potential extension for the next bullish movement could reach the $1,552 until $1,576. From this area, we expect a reversal move. Watching the last Commitment of Traders report, “big boys” holds a 93.79% of long positions. This situation makes us suspect that taking profit by institutional traders should be starting in the coming days. In consequence, our prefered bias is neutral, expecting the corrective movement, which must be in the same degree as the last bullish cycle.