XauUsd could drop 500 once more

Since Friday's blow-off top, XAUUSD has exhibited strong volatility. Initially, the price tested the crucial 2325 support level, followed by a robust reversal to retest the 2400 mark.

Although the long-term outlook remains bullish, I believe we are currently entering a corrective phase. Given the heightened volatility and the lofty levels at which Gold is trading, there may be promising selling opportunities in the near future.

Technically, the recent 700-pip upward movement from the 2325 support appears corrective, as the price exhibits overlapping rather than impulsive behavior. Moreover, the 2400 level is likely to attract significant selling pressure.

In summary, rallies should be viewed as selling opportunities, with a target at 2325 for a retest of support.

Traders should also monitor the short-term support zone between 2375 and 2380. A breach of this support could signal that yesterday's peak marks the conclusion of this correction.