Gold rallied hard mirroring the green bar (weekly) formed in June as it burst through the $1500 mark after a gap of 6 years broadly on account of heightened global risks and slowdown fears due to escalation in U.S – China trade war which would put undue pressure on the U.S Fed to further cut rates to spur growth. The big move cleared the path for gold to head higher as major resistances gave way and yet again patterns broke on the upside signaling continued bullishness even after such a mammoth run from $1270s without any significant correction. To watch in the week – Important data from America.
On the chart-
Gold finally re-entered $1500 though on a brief note but the resistance seems broken now given the velocity of the move. With U.S signaling continued trade spat by not accepting to converge on a deal gives ample room for the yellow metal to head higher as global growth story continues to put its weight on the dollar and riskier assets. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1510. If this is crossed it can rally till $1527. And if this is taken out it can go towards $1541.
Short trades remain distant to negligible given the bullishness gold is trading in except scalps trades.
Bullish view – Bulls re-claimed $1500 with a ferocious upmove taking another level down in less than 4 months. The rally seems to get bigger only since all fundamental factors continue to support higher gold prices along with a huge technical breakout of 350 plus points from $1400s. Geo-political concerns keeps roaring back into the picture adding to the numerous factors which already dictate higher prices. A perfect cocktail of above mentioned scenarios provides a sustained bull run which may reach the highs of $1800 very soon.
Bearish bets remain a failure in such a bullish scenario.
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 $1501 for the targets of $1510 and $1527 with a stop loss placed below $1495. Longer term target $1541.
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 finally re-entered $1500 though on a brief note but the resistance seems broken now given the velocity of the move. With U.S signaling continued trade spat by not accepting to converge on a deal gives ample room for the yellow metal to head higher as global growth story continues to put its weight on the dollar and riskier assets. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1510. If this is crossed it can rally till $1527. And if this is taken out it can go towards $1541.
Short trades remain distant to negligible given the bullishness gold is trading in except scalps trades.
Bullish view – Bulls re-claimed $1500 with a ferocious upmove taking another level down in less than 4 months. The rally seems to get bigger only since all fundamental factors continue to support higher gold prices along with a huge technical breakout of 350 plus points from $1400s. Geo-political concerns keeps roaring back into the picture adding to the numerous factors which already dictate higher prices. A perfect cocktail of above mentioned scenarios provides a sustained bull run which may reach the highs of $1800 very soon.
Bearish bets remain a failure in such a bullish scenario.
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 $1501 for the targets of $1510 and $1527 with a stop loss placed below $1495. Longer term target $1541.
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 $1510
Comment:
Second long target met at $1527
Comment:
Great dip to accumulate fresh longs with above mentioned targets
Comment:
Long target !510 achieved again
Comment:
Long target $1527 achieved again