Gold had a red bar after a gap of 3 weeks mainly on account of retracement as there seems no cause for the yellow metal to show any weakness in this unfortunate time which is daily drying up population worldwide. With the economies shut all around and most of the Governments providing stimulus (The main focus being the Fed with unlimited QE) the demand for gold keeps on increasing as the central banks keep on printing money. Only drawback which may hurt the prices to some extent is the phased reopening which many countries are now trying but situation wont improve soon keeping this negativity in check. To watch next week – BOE meeting and other important economic data.
On the chart –
Gold had a mild correction after a monstrous $250 rally mostly on hopes of economies reopening and restarting activities. With the virus still showing no signs of retreating, its very difficult for the world to get in order which should keep the prices bullish. Fundamentals and technicals both strongly support the bullishness and currently its hard to find a chink in the armor of gold bulls. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1716. If this is crossed it can move towards $1727. And if this is taken out it can rally to $1740.
2. Short trades remain highly unattractive in this bullish environment except scalp trades.
Bullish view – Bulls took a breather after having a $250 plus rally but the closing remains supportive for further uptrend as both technical and fundamentals stay in favor of them. For bulls to remain in the driving seat they need to protect the lows while aiming for fresh highs which will keep 1800 plus in closer sight.
Bearish bets still remain out of context.
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 $1704 for the targets of $1716 and $1727 with a stop loss placed below $1685. Longer term target $1740.
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 had a mild correction after a monstrous $250 rally mostly on hopes of economies reopening and restarting activities. With the virus still showing no signs of retreating, its very difficult for the world to get in order which should keep the prices bullish. Fundamentals and technicals both strongly support the bullishness and currently its hard to find a chink in the armor of gold bulls. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1716. If this is crossed it can move towards $1727. And if this is taken out it can rally to $1740.
2. Short trades remain highly unattractive in this bullish environment except scalp trades.
Bullish view – Bulls took a breather after having a $250 plus rally but the closing remains supportive for further uptrend as both technical and fundamentals stay in favor of them. For bulls to remain in the driving seat they need to protect the lows while aiming for fresh highs which will keep 1800 plus in closer sight.
Bearish bets still remain out of context.
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 $1704 for the targets of $1716 and $1727 with a stop loss placed below $1685. Longer term target $1740.
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
Comment:
First long target met at $1716
Comment:
Second long target met at $1727