Price near 600 EMA, which proved to be a solid resistance last week. The decline from 1740 to 1680 merely served as a correction and based on the following fundamental facts, I expect a rally in XAU/USD parity:
1- Majority of the jobless claims in April were transferred to May in order to reduce the impact of the initial shockwave
2- Highest number of jobless claims since 1939 is upcoming this Friday
3- Repetition of historical 100 year long pattern requires further downside from the current levels of the stock market
4- Such downside in stock markets, high number of unemployed people and low interest rates will attract more investors to buy gold.
5- 1H RSI is oversold
I expect XAU/USD to break 1740 resistance this Friday and later test 1830, 1930 and 2000 respectively.
1- Majority of the jobless claims in April were transferred to May in order to reduce the impact of the initial shockwave
2- Highest number of jobless claims since 1939 is upcoming this Friday
3- Repetition of historical 100 year long pattern requires further downside from the current levels of the stock market
4- Such downside in stock markets, high number of unemployed people and low interest rates will attract more investors to buy gold.
5- 1H RSI is oversold
I expect XAU/USD to break 1740 resistance this Friday and later test 1830, 1930 and 2000 respectively.
Further upside movement is expected until 1780.