FX.co ★ king.zelda | XAU/USD, GOLD

**GOLD** Gold started trading with a downward gap. This was caused by a surge in oil prices, which fueled inflation expectations. As is known, this hints that central banks will soon start raising interest rates. For gold, which does not generate profits on its own, high rates are a negative factor, so investors began to sell it. Honestly, I was expecting a more significant drop, but we saw a false breakout below the level of 4742 and immediately a sharp price reversal upwards. This is a good sign indicating that gold may continue to rise. An increase in the price of gold is quite possible if the geopolitical situation escalates or if markets start to fear an economic downturn. The price range or demand zone is located in the range of 4742-4780. We expect the formation of a reversal pattern and plan to open a long position aiming to retest Friday's high at the level of 4889. To confirm a trend change to the downside, a daily candle closing below the level of 4742 is required.