Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will likely NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.

The pullback up to 1394 occurred and my short was stopped out at 1397.

Spot gold managed to complete 3 sets on the way up before stalling in the 4th set (1419-1426).

If spot really is taking a breather, price may try to test 1419 support to target 1416 and then 1410.

For some more context, here are the H4 and H1 charts:

From the H4 chart, a 3rd peak is forming to complement the earlier double top.

If this peak turns out to be an even lower top than the prior two, I’d be inclined to short at 1425 (SL at 1428) else I’d go long on any convincing break upwards from 1436.

Surges like the one that took spot from the yellow box into the blue box (from the H4 chart) tend to behave like gaps.

Consequently, gaps tend to “want” to be closed.

I had expected the dollar to weaken only slightly, not as much as it actually did after Powell’s initial remarks at his testimonial.

That said, XAUUSD is currently stalling around 1425.

Let’s face it. If Powell’s remarks had any more bite in it, gold would’ve AT LEAST gone on to test 1435.

But it hasn’t. And the cycle continues.