Gold remained in consolidation post a stellar run from the lows as a higher dollar limited the gains though this might be just a temporary co relation as seen in the previous weeks. The move in the week was broadly on the Fed’s policy as it remains confident about the near term inflation rise being unrealistic provided enough impetus to the riskier assets which in turn paused the upmove in gold. Coming to the ongoing uncertainty, the pandemic remains an undefeated mighty villain which has and is still wrecking the global economy as new mutants are able to bypass the current vaccines creating another round of heightened anxiety as the situation demands prolonged restrictions and lockdowns. With most countries remaining in grip of the second wave it seems pretty simple to advocate higher gold prices as it remains the safest haven. To watch next week – Earnings, Fed speakers, BoE meet and other important economic data.
On the chart –
Gold had another indecisive week ending up with minor losses broadly on back of a higher dollar as the other ongoing events continue to provide a sizable positiveness to the price. The pattern breakouts remain intact as the price movement is confined in a range with the major breakout – the weekly flag/consolidation still awaiting to happen which could be on course given push by the smaller ones(breakouts) happened earlier. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1771. If this is crossed it can move towards $1789. And if this is taken out it can rally to $1804.
2. Bears remain isolated as the trend is largely bullish except scalp trades.
Bullish view – Bulls again tried to burst higher but failed to even cross previous week’s high as a higher dollar along with a renewed interest in riskier assets held back the yellow metal. The chart is pretty bullish as the pattern breakouts remain respected along with stupendous fundamental support as the world continues to fight against the pandemic which has stalled the economic recovery due to persistent restrictions and fresh lockdowns to curb the rampant virus but has only heightened uncertainty given the inability of the vaccines against new mutants. In such a scenario its highly expected that the ongoing flag/consolidation would break on the upside quite soon.
Bearishness still remains off the grid.
On larger terms, gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1772 for the targets of $1789 and $1804 with a stop loss placed below $1763. Longer term target $1823.
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 had another indecisive week ending up with minor losses broadly on back of a higher dollar as the other ongoing events continue to provide a sizable positiveness to the price. The pattern breakouts remain intact as the price movement is confined in a range with the major breakout – the weekly flag/consolidation still awaiting to happen which could be on course given push by the smaller ones(breakouts) happened earlier. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1771. If this is crossed it can move towards $1789. And if this is taken out it can rally to $1804.
2. Bears remain isolated as the trend is largely bullish except scalp trades.
Bullish view – Bulls again tried to burst higher but failed to even cross previous week’s high as a higher dollar along with a renewed interest in riskier assets held back the yellow metal. The chart is pretty bullish as the pattern breakouts remain respected along with stupendous fundamental support as the world continues to fight against the pandemic which has stalled the economic recovery due to persistent restrictions and fresh lockdowns to curb the rampant virus but has only heightened uncertainty given the inability of the vaccines against new mutants. In such a scenario its highly expected that the ongoing flag/consolidation would break on the upside quite soon.
Bearishness still remains off the grid.
On larger terms, gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1772 for the targets of $1789 and $1804 with a stop loss placed below $1763. Longer term target $1823.
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 $1789
Comment:
Second long target met at $1804
Comment:
Third long target met at $1823
Comment:
Next targets $1839 and $1857
Comment:
Fourth long target met at $1839