Gold breaks above 2000 handle against US Dollar today, and even hit a new record high surpasses 3000 handle against Australian Dollar . Risk selloff picks up momentum as European investors start to react to weekend’s news about UBS takeover of the troubled Credit Suisse. Apparently, the announcement did little to calm investors’ nerve.
For XAU/AUD, it broke through 2873.61 record high (made in 2020) last week and the up trend continues today. For now, near term outlook will stay bullish as long as 2871.30 support holds. Immediate focus is on 100% projection of 2438.01 to 2795.89 from 2648.89 at 3006.77. Sustained break there could prompt further upside acceleration to 161.8% projection at 3227.93. That level is close to long term level of 61.8% projection of 1604.40 to 2873.61 from 2438.01 at 3222.38.
Meanwhile XAU/USD’s rise from 1614.60 is on track to 61.8% projection of 1614.60 to 1959.47 from 1804.48 at 2017.60. A firm break through this level will pave the way for a retest of the 2074.84 record high. In any case, outlook in XAU/USD will remain bullish as long as 1936.15 resistance turned support holds. The long-term uptrend could also be set to resume, potentially reaching 61.8% projection of 1160.17 to 2074.85 from 1614.60 at 2179.86.
