Gold has been unable to break above the resistance zone of 2418.0. The formation of a new swing high at this level in May indicates that bullish momentum has waned. Currently, gold is trapped between 2420.0 and 2285.0.
The Average Daily Range (ADR) indicator revealed lower daily ranges in the first quarter of the year, suggesting a period of consolidation in the market. The ADR later showed an increase in daily ranges as the market transitioned from consolidation to a strong trend.
Since the beginning of the current market consolidation at 2418.0, the ADR has shown a gradual decline in the daily ranges covered. Lower ranges indicate reduced market activity, a phenomenon carefully monitored by forex signals providers to know when not to strike.
Gold Short-term Trend: Ranging
On the lower timeframe, the price consistently repels from the demand zone of 2285.0. Range traders can capitalize on this by trading from the borders and targeting the middle of the ranges with proper risk management.
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