Gold yet again remained in consolidation even after another pattern breakout offering no respite to either camps (bulls and bears) as they just kept biting into one another for glory. This kind of nonchalant movement with every weekly candle closing above the trendline support remains one of the key indicators for the continuity of the trend on technical front while fundamentals remains largely supportive for higher prices as officially pandemic enters into the 2nd wave though comparatively less lethal but its forcing countries to reimpose strict restrictions which raises uncertainty of economic revival even more along with ongoing geopolitical concerns. For gold this year is quite special as it has one of the most important events – U.S Presidential Elections which in itself is a huge ambivalence generator. While dollar tried several times to reverse course post Fed policy outcome which ultimately it could not adding to the bullish build of gold and stop-start vaccine trials continue to add anxiety. To watch this week – Fed Chair Powell testimony and other important economic events.
On the chart –
While gold’s showcased struggle continues as it remains range bound unable to break away, its pretty evident from the price action that its technically in a strong bull trend breaking pattern after pattern on weekly basis. Again another triangle was broken in daily timeframe which was also retested reigniting hopes of a directive move finally. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1963. If this is crossed it can move towards $1989. And if this is taken out it can rally to $2008.
2. Bearish bets remain in denial as breakouts are happening on the upside except scalp trades.
Bullish view – Bulls finally broke the ongoing triangle which they were stuck in plus even had a successful retest of the breakout adding to the prevailing bullishness and hopefully this move should lead to a directive price action. The technical aspect looks quite formidable post the breakout, fundamentals too provide massive support as uncertainty is on the rise with pandemic evolving into 2nd wave in most countries along with overly concerning geopolitical issues. And being the election year gold can see sharp moves with $2700 plus as a mid to long term target.
Bearishness still remains off 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 $1955 for the targets of $1963 and $1989 with a stop loss placed below $1944. Longer term target $2008.
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 –
While gold’s showcased struggle continues as it remains range bound unable to break away, its pretty evident from the price action that its technically in a strong bull trend breaking pattern after pattern on weekly basis. Again another triangle was broken in daily timeframe which was also retested reigniting hopes of a directive move finally. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1963. If this is crossed it can move towards $1989. And if this is taken out it can rally to $2008.
2. Bearish bets remain in denial as breakouts are happening on the upside except scalp trades.
Bullish view – Bulls finally broke the ongoing triangle which they were stuck in plus even had a successful retest of the breakout adding to the prevailing bullishness and hopefully this move should lead to a directive price action. The technical aspect looks quite formidable post the breakout, fundamentals too provide massive support as uncertainty is on the rise with pandemic evolving into 2nd wave in most countries along with overly concerning geopolitical issues. And being the election year gold can see sharp moves with $2700 plus as a mid to long term target.
Bearishness still remains off 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 $1955 for the targets of $1963 and $1989 with a stop loss placed below $1944. Longer term target $2008.
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.