Gold had another big green week as inflation fears returned back forcing riskier asset classes to reverse some gains. The situation though remains mostly same with virus still rampant in many countries while few others are reopening after vaccinating the population, the element of fear hasn’t faded with the new mutants spreading at a heightened pace which might force countries to rethink over opening too soon. Though the cheer is quite obvious post the long time spent in curbs it might be short lived given what has happened with some other countries after they were fully opened post the end of first wave. The outlook for the economies remain pretty grim as if a part of globe is on the improvement the part is succumbing which is not at all helping the overall recovery and this scenario might stay for some more months which only signifies a sustained bull run for the yellow metal as it remains the safest haven. To watch next week – Fed speakers, earnings and other important economic data.
On the chart –
Gold moved higher with a $58 green candle clearly breaking out of the flag even on a conservative approach doubly confirming the much awaited large flag breakout. The metal now has a defined trajectory which should lead it to new highs given the intensity of the breakout. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1886. If this is crossed it can move towards $1901. And if this is taken out it can rally to $1921.
2. Bearish bets remain void post the large bullish breakout except scalp trades.
Bullish view – Bulls climbed higher post breaking out of the flag as inflation fears aided their run along with the grim situation across the globe due to the pandemic which is still unwilling to rest. For bulls the breakout itself is an exuberance but what lies ahead would be even more cheerful as the breakout is huge and it should result in new highs given the technicals and the fundamental factors aiding the yellow metal.
Bearishness continues to remain off the grid as the trend remains bullish.
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 $1891 for the targets of $1901 and $1921 with a stop loss placed below $1882. Longer term target $1945.
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 moved higher with a $58 green candle clearly breaking out of the flag even on a conservative approach doubly confirming the much awaited large flag breakout. The metal now has a defined trajectory which should lead it to new highs given the intensity of the breakout. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1886. If this is crossed it can move towards $1901. And if this is taken out it can rally to $1921.
2. Bearish bets remain void post the large bullish breakout except scalp trades.
Bullish view – Bulls climbed higher post breaking out of the flag as inflation fears aided their run along with the grim situation across the globe due to the pandemic which is still unwilling to rest. For bulls the breakout itself is an exuberance but what lies ahead would be even more cheerful as the breakout is huge and it should result in new highs given the technicals and the fundamental factors aiding the yellow metal.
Bearishness continues to remain off the grid as the trend remains bullish.
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 $1891 for the targets of $1901 and $1921 with a stop loss placed below $1882. Longer term target $1945.
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 $1901