Gold extended its bull run hitting a fresh 52 week high broadly on account of deepening global crisis due to the persistent wrath of the pandemic. The economic outlook gets grimmer day by day as number of infections are surging pretty fast forcing the countries to put a screeching halt to their phased re-openings (of economies). Moreover, the race for vaccine is not look as promising either which is ultimately proving that viruses yet cannot have any sort of vaccines or a singular approach of treatment. While most of the riskier asset classes are in a denial mode, reality for sure has started biting from different angles as their demand is getting sluggish compared to safe havens. Current situation looks ripe for a burst over $1800 as the technical headwind is simply too strong on the upside. To watch next week – Powell and Mnuchin testimonies, Fed meeting minutes and other important economic data.
On the chart –
Gold registered a new 52 week high whilst having a close at another. This fresh upmove suggests the consolidation has been successfully broken on the upside triggering another leg of sustained run which would this time conquer the much awaited “$1800”. Fundamentals remain strongly supportive for higher prices while technicals point towards an uninterrupted run on the upside. 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 and 1823.
2. Short trades seems to have filtered out again excepting scalp trades unless the trend changes.
Bullish view – Bulls advanced further making a new high as well as closing at another rather closing above its previous 52 week high making a strong case for prolonged uptrend. The ongoing concerns remain ignited firming gold’s already high demand. Fundamentals continue remain in favor of gold while technicals got even stronger after the breakout from the consolidation making $1800 look closer than ever.
Bears look defeated again after they failed to stop the breakout.
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 $1771 for the targets of $1789 and $1804 with a stop loss placed below $1761. 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 registered a new 52 week high whilst having a close at another. This fresh upmove suggests the consolidation has been successfully broken on the upside triggering another leg of sustained run which would this time conquer the much awaited “$1800”. Fundamentals remain strongly supportive for higher prices while technicals point towards an uninterrupted run on the upside. 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 and 1823.
2. Short trades seems to have filtered out again excepting scalp trades unless the trend changes.
Bullish view – Bulls advanced further making a new high as well as closing at another rather closing above its previous 52 week high making a strong case for prolonged uptrend. The ongoing concerns remain ignited firming gold’s already high demand. Fundamentals continue remain in favor of gold while technicals got even stronger after the breakout from the consolidation making $1800 look closer than ever.
Bears look defeated again after they failed to stop the breakout.
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 $1771 for the targets of $1789 and $1804 with a stop loss placed below $1761. 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