Gold resumed its uptrend as it finally broke out from the consolidation making a fresh 52 week high while having a new (weekly) closing high as well. This move was on expected lines which further empowers the metal for a sustained run as renewed trade tensions and the pandemic continues to haunt with virus showing no signs of retreating rather some countries could be experiencing the 2nd wave of infections which would definitely pose as an immense support to the prices in days ahead. As more and more countries are reopening their economies, chances of 2nd wave becomes high which may be deadlier than the first one as seen during the Spanish Flu outbreak in 1918 which should lead the yellow metal even higher. To watch next week – FOMC meeting minutes and other important economic data.
On the chart –
Gold had a rise of $39 after 2 weeks of consolidation owing to poor economic data due to the pandemic’s impact on the economy. The closing at new high suggests prolonged bullish run as the older high should now act as a support. Fundamentals and technicals both now come at par on terms of strength that is strong since the bullish breakout. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1755. If this is crossed it can move towards $1771. And if this is taken out it can rally to $1789.
2. Short trades still remain colorless as trend remains overly bullish except scalp trades.
Bullish view – Bulls had a good week after 14 days of consolidation as they notched up a fresh 52 week high and had a closing at another. The bullish bias seems to grow only as re-opened economies are facing a threat of 2nd wave of infections which may force them to take measures again which will hamper the economic activities making gold the better investment amongst all asset class. With the bullish breakout it does open a fresh leg on the upside which should take the metal above $1800 soon.
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 $1752 for the targets of $1755 and $1771 with a stop loss placed below $1739. Longer term target $1789.
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 rise of $39 after 2 weeks of consolidation owing to poor economic data due to the pandemic’s impact on the economy. The closing at new high suggests prolonged bullish run as the older high should now act as a support. Fundamentals and technicals both now come at par on terms of strength that is strong since the bullish breakout. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1755. If this is crossed it can move towards $1771. And if this is taken out it can rally to $1789.
2. Short trades still remain colorless as trend remains overly bullish except scalp trades.
Bullish view – Bulls had a good week after 14 days of consolidation as they notched up a fresh 52 week high and had a closing at another. The bullish bias seems to grow only as re-opened economies are facing a threat of 2nd wave of infections which may force them to take measures again which will hamper the economic activities making gold the better investment amongst all asset class. With the bullish breakout it does open a fresh leg on the upside which should take the metal above $1800 soon.
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 $1752 for the targets of $1755 and $1771 with a stop loss placed below $1739. Longer term target $1789.
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 $1755
Comment:
Buy on dips working as a charm