Gold - Consolidating in Parallel Channel

Gold has been steadily rising since decisively crossing the all-time high of 2075 on March 1, 2024.

• The safe-haven commodity retracted after a long shadow candle on April 22, 2025, ending a year-long bull run.
  
• Gold is now in a parallel channel between 3120 (lower) and 3500 (higher).
  
• Consolidation may continue, with a bias towards profit booking.
  
• The 50 SMA acts as a strong support level, providing low-risk entry when prices dip below it.
  
• Gold should be part of a portfolio, but current prices seem high for investment. Traders can consider entering based on their risk-reward appetite, taking cues from the 50 SMA and parallel trend.
  

Disclaimer: This post does not recommend any trade. It aims to better understand the chart.