A great opportunity for Shorting Gold
The lower band of the is my target with the stop loss above the recent swing high.
Here are the reasons for the Gold short trade.
1) This is the weighted average daily USD chart. (To replicate this see the screenshot title)
As you can see after a side way move on USD, it recently made a false break of the lower followed by a break on the upside and I think at nearest target is the Fibo overlaps or even the upper band of the blue . Stronger USD means cheaper Gold .
2) See the 10 Yrs Treasury Note (Weekly)
and 10 Yrs Treasury Note (Daily)
as you can see on the weekly Chart the price respects the red line for years as support or resistance and just recently bounced off the Red line again. On the also you see that it is broken the blue . Stronger price on the chart means stronger USD and stronger USD is cheaper Gold .
3) DXY also shows a break of the down trend channel. It is heading up and same story as above.
4) See bond too. Yesterday the uptrend structure on the 4 Hrs chart was broken and today it tried to make a tiny correction. Now it is heading lower at least with the target of the Major rising . If the price heading lower then USD heading higher and as you know Gold goes lower.