Gold resumed its rally as it gained $22 in a big range week which tested levels of $1400 and $1450 before settling at $1440. The ferocious up-move was a result of ripening trade tensions between U.S and China as U.S imposed a fresh round of tariffs sending risky asset class spiraling downwards along with industrial commodities as it gave a further push to the ongoing slowdown fears. This move prompted bets on a further rate cut by the U. S Fed which was the main driver for the higher gold prices. Globally, situation looks quite grim as negative surprises from “Pandora’s Box” doesnt seem to stop which will continue to strengthen the bullish case for the gold.
On the chart –
Gold made a dash towards the highs again as it raced higher on account of heightened tensions related to ongoing U.S – China trade war as U.S upped the ante by imposing a fresh round of tariffs while the truce negotiations continues. Gold made a new closing high further strengthening the bullish scenario. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1448. If this is crossed it can rally till $1464. And if this is taken out it can climb till $1480.
Short trades remain a failing bet as gold dwells strongly in bullish grip except scalp trades.
Bullish view – Bulls charged ahead creating a new closing high in weekly timeframe as they finally conquered $1430s after 5 weeks on account of a ripening trade war between U.S and China which yet again sparked global growth fears leading to a flight for safe haven assets. Bulls likely resumed a fresh leg of rally as important levels were triumphed upon. Each passing week is bolstering bullishness as economic slowdown nears reality and political anxiety keeps growing. The situation is apt for gold to have a steady rise and claim back the $1700-$1800 levels.
Bearish bets remain wrecked given the break out from 6 year consolidation.
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 $1450 for the targets of $1464 and $1480 with a stop loss placed below $1435.
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 made a dash towards the highs again as it raced higher on account of heightened tensions related to ongoing U.S – China trade war as U.S upped the ante by imposing a fresh round of tariffs while the truce negotiations continues. Gold made a new closing high further strengthening the bullish scenario. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1448. If this is crossed it can rally till $1464. And if this is taken out it can climb till $1480.
Short trades remain a failing bet as gold dwells strongly in bullish grip except scalp trades.
Bullish view – Bulls charged ahead creating a new closing high in weekly timeframe as they finally conquered $1430s after 5 weeks on account of a ripening trade war between U.S and China which yet again sparked global growth fears leading to a flight for safe haven assets. Bulls likely resumed a fresh leg of rally as important levels were triumphed upon. Each passing week is bolstering bullishness as economic slowdown nears reality and political anxiety keeps growing. The situation is apt for gold to have a steady rise and claim back the $1700-$1800 levels.
Bearish bets remain wrecked given the break out from 6 year consolidation.
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 $1450 for the targets of $1464 and $1480 with a stop loss placed below $1435.
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.
Comment:
Buy on dips strategy should be most beneficial in given situation
Comment:
Trade Active
Comment:
First long target met at $1464
Comment:
Second long target met at $1480
Comment:
Next bull target $1495
Comment:
Third long target met at $1495
Comment:
Further bull targets $1527 and $1541
Comment:
Flag breakout of 114 points target met at $1506