Gold created another towering green bar with gains of over $40 on the back of heightened geopolitical tensions between U.S and Iran. The flare up, caused by the U.S led drone attack which killed the top Iranian commander resulted in a risk off around the globe whilst pushing gold and oil prices higher further strengthening the bullish trend. With Iran looking for a revenge as stated by their media, it should keep the gold bulls busy in the new year as things might result in a snowball effect. A weaker dollar also helped the cause of the rise in yellow metal prices. To watch this week – Brexit bill and other important economic data.
On the chart –
Gold climbed back near its highs as geopolitical concerns weighed upon with another big weekly green candle. Resistances gave way easily as mounting fears of a possible “war” led to an increase in safe haven buying which should continue further. With fundamentals back in favor of bulls and technicals pursuant of new highs the trend keeps getting stronger. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1554. If this is crossed it can move towards $1571. And if this is taken out it can rally to $1597.
2. Short trades fail to gain any attention due to bullish environment except scalp trades.
Bullish view – Bulls nearly captured the highs gaining more than $40 as the prices were on fire on account of increased uncertainty over geopolitical risks. It was the word go for bulls from start of the week which catapulted into large green ones (bars/candles) at the end of the week as the resistances gave way like a hot knife through butter. Fundamentals fully turned in favor of bulls on the second day of the new year which comes as an added advantage to ongoing technical uptrend which should propel the prices further towards its long term target of $1800 plus.
Bearishness continues to remain off the grid.
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 $1558 for the targets of $1571 and $1597 with a stop loss placed below $1541. Longer term target $1616.
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 climbed back near its highs as geopolitical concerns weighed upon with another big weekly green candle. Resistances gave way easily as mounting fears of a possible “war” led to an increase in safe haven buying which should continue further. With fundamentals back in favor of bulls and technicals pursuant of new highs the trend keeps getting stronger. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1554. If this is crossed it can move towards $1571. And if this is taken out it can rally to $1597.
2. Short trades fail to gain any attention due to bullish environment except scalp trades.
Bullish view – Bulls nearly captured the highs gaining more than $40 as the prices were on fire on account of increased uncertainty over geopolitical risks. It was the word go for bulls from start of the week which catapulted into large green ones (bars/candles) at the end of the week as the resistances gave way like a hot knife through butter. Fundamentals fully turned in favor of bulls on the second day of the new year which comes as an added advantage to ongoing technical uptrend which should propel the prices further towards its long term target of $1800 plus.
Bearishness continues to remain off the grid.
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 $1558 for the targets of $1571 and $1597 with a stop loss placed below $1541. Longer term target $1616.
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 $1571
Comment:
Hit the upper green trend line
Comment:
Retest of previous high should give excellent long entry opportunity
Comment:
Second long target met at $1597