Gold continued to pile on the gains as it added $18 to register a new closing high (weekly) again on the back of major risk off trade worldwide fueled by increased fears of spreading deadly coronavirus. New cases across the globe and growing death toll remained a large concern as the situation was declared as a global emergency by WHO, it quietly pointed in the direction of 2003 SARS outbreak scenario along with Impeachment trial in full swing being the major fundamental reasons for the yellow metal to rise without facing any kind of strict resistance. Though the outcome of the trial maybe easily guessable but it still is a volatility generator as it gets voted on Wednesday. Again, Fundamentals more than completely back the bulls with technicals in a good follow through from last 2 weeks should keep the trend intact. To watch this week – Impeachment vote, jobs report and other important economic data.
On the chart –
Gold moved higher on back of increased safe haven demand owing to mounting fears of a possible SARS like epidemic creating another decent green bar demonstrating continuity and comfortability in the trend. Fundamentals and technicals both show solid strength for the gold price going higher with a possible triangle breakout in lower timeframes. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1597. If this is crossed it can move towards $1616. And if this is taken out it can rally to $1630.
2. Short trades still remain colorless as trend remains overly bullish except scalp trades.
Bullish view – Bulls registered a new closing high (weekly) as the gains multiplied on escalating fears regarding possible epidemic outbreak comparable to 2003 SARS case. Another factor for the gains was the uncertainty caused by Impeachment trial. Both fundamentals and technicals are supportive of bulls, but they need to defend the supports to keep the momentum intact.
Bearish bets still offer no value.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1591 for the targets of $1597 and $1616 with a stop loss placed below $1576. Longer term target $1630.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold moved higher on back of increased safe haven demand owing to mounting fears of a possible SARS like epidemic creating another decent green bar demonstrating continuity and comfortability in the trend. Fundamentals and technicals both show solid strength for the gold price going higher with a possible triangle breakout in lower timeframes. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1597. If this is crossed it can move towards $1616. And if this is taken out it can rally to $1630.
2. Short trades still remain colorless as trend remains overly bullish except scalp trades.
Bullish view – Bulls registered a new closing high (weekly) as the gains multiplied on escalating fears regarding possible epidemic outbreak comparable to 2003 SARS case. Another factor for the gains was the uncertainty caused by Impeachment trial. Both fundamentals and technicals are supportive of bulls, but they need to defend the supports to keep the momentum intact.
Bearish bets still offer no value.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1591 for the targets of $1597 and $1616 with a stop loss placed below $1576. Longer term target $1630.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
Trade active