Gold XAUUSD price is widely followed in financial markets around the world. Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a flat currency system in which paper money doesn’t have an implied backing with any physical form of monetization.

XAU USD price analysis

When looking at XAUUSD Gold monthly timeframe we can see a monthly demand imbalance that was tested last March 2020. Gold has been rallying ever since and today finally broke monthly highest printed last month. Monthly is in a clear uptrend creating new demand and respecting, so the long term bias is bullish on Gold XAUUSD.

GOLD cash XAUUSD breaking higher

We might have short opportunities in a few weeks but it is not possible right now because Gold XAUSUD is breaking higher respecting bigger timeframe demand imbalances.

We do not need to pay attention to Gold fundamentals, if you are interested in learning more about the Gold market fundamentals, this is what I recently read about the Gold market.

The spread between spot gold and futures prices continue to puzzle investors despite some improvement on the logistical side of the issue. 

Analysts highlighted major gold refineries and mining shutdowns as well as transportation limitations as some of the main reasons behind the unusual price spread. 

A differential … is quite unusual. The futures basis typically trades within a few dollars of physical — a function of financing, shipping, insurance and storage costs — as plentiful physical metal in London could always be brought to smooth any significant disequilibrium conditions. Financing, shipping and modest recasting costs also traditionally acted as constraints on basis expansion,” explained the strategists at TD. However, the whole system was broken as COVID-19 logistical limitations disrupted everything from production to air travel.

Does the above make sense? Well, it probably does but it does not help us at all at making a trading decision to buy or sell Gold futures or not.

Gold price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

Gold supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news releases on Gold XAUUSD, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.

XAU USD commodity trading

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand commodities trading course.

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