Gold: Short is the only trade strategy

London (May 26)  Recall Gold Since February and the break at 1815.65. As advised, short 1815.65 to target 1728.91 for 80+ pips. Gold then languished at 1725 for weeks. The range than in February was 173 points from 1815.65 to 1642.17 and 1642.17 held.

April 26 Gold as informed ranges is 1846.05 to 1693.27 or 152 pips and a 21 point range compression. Most vital for higher / lower is 1769.67. May 3rd, 1769.67 broke higher for Gold to then range 76 points from 1769.67 to its vital high/ low point at 1846.05.

Recall again April 26: above 1846.05 targets 1870.01 and max at 1937.62. Gold's high achieved 1910.27. Gold severely lacks range and movement ability and explains why its imperative to trade  Gold perfectly at its vital points.

Gold at 1846 is the top average among 10 years of monthly averages which means the trading strategy is short.

Gold and the S&P’s trade above 5-year averages while DXY trades below at 95.53. Explains DXY Vs Gold negative Correlations from monthly averages to 10 years. Gold is misplaced and should trade alongside DXY with positive Correlations. DXY must break above 95.53 or Gold must trade below 1484.48.

From a day trade perspective, the suggested trade strategy is short 1912.27 to target 1893.66.

While 1693 represents a vital bottom, USD/XAU as exchange rates predict exchange rates informs Gold's range is located from exactly 2000 to 1785.71. Gold is currently at range highs.

USD/XAU not only aligns Gold's price properly to USD but clearly Gold's problem to movements is not XAU/USD but rather USD/XAU as USD/XAU lacks required movements due to USD for a substantial trade. However, Short is the only available strategy.

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