Gold had a quite eventful week where it briefly broke $1700 mainly due to increased risk appetite worldwide before settling back above the support though with minor cuts for the week. More so, as economies kept on opening or showed signs of also led a hand in the fall which was negated or simply bought as the metal had decisively broken out plus nothing as far as the pandemic or geopolitical concerns showed any signs of easing. The rally from the lows can be accredited to the fresh bout of tensions in form of riots and public unrest in the U.S over racism which should further propel gold as it does nothing but add another feather in the cap of uncertainties. To watch next week – Brexit talks and other important economic data.
On the chart –
Gold made a pin bar following the retracement back from the lows clearly suggesting a near term bottom formation. The fall was technically another retest of the pattern breakout which was again successful further cementing the trend for the yellow metal. Fundamentals keep on supporting higher prices as uncertainties are failing to die down rather fresh ones are being added in intervals. We have 2 scenarios-
1. Gold closed above the support, till this is held it can go to $1740. If this is crossed it can move towards $1755. And if this is taken out it can rally to $1771.
2. Short trades remain nullified after another bullish breakout except scalp trades.
Bullish view – Bulls again did not have a colorful week but did have many takeaways from it as they confidently pulled back the prices from lows to above the support level suggesting a near term bottom formation and re-highlighting the “buy on dips” or the current mindset of the investors. Also, another pattern breakout further bolstered the direction after the retest of the earlier breakout. Both fundamentals and technicals continue to support higher prices making the march towards $1800 plus brisker.
Bearishness remains off the table as supports were held.
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 $1740 for the targets of $1755 and $1771 with a stop loss placed below $1729. 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 made a pin bar following the retracement back from the lows clearly suggesting a near term bottom formation. The fall was technically another retest of the pattern breakout which was again successful further cementing the trend for the yellow metal. Fundamentals keep on supporting higher prices as uncertainties are failing to die down rather fresh ones are being added in intervals. We have 2 scenarios-
1. Gold closed above the support, till this is held it can go to $1740. If this is crossed it can move towards $1755. And if this is taken out it can rally to $1771.
2. Short trades remain nullified after another bullish breakout except scalp trades.
Bullish view – Bulls again did not have a colorful week but did have many takeaways from it as they confidently pulled back the prices from lows to above the support level suggesting a near term bottom formation and re-highlighting the “buy on dips” or the current mindset of the investors. Also, another pattern breakout further bolstered the direction after the retest of the earlier breakout. Both fundamentals and technicals continue to support higher prices making the march towards $1800 plus brisker.
Bearishness remains off the table as supports were held.
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 $1740 for the targets of $1755 and $1771 with a stop loss placed below $1729. 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