Gold continued its relentless rally as it gained $74 for the week not allowing even a single negative tick. The close above $1900 made the handsome gains pretty obvious as once the all time high is crossed its certainly no looking back unless there is a dramatic turnaround, not only it created another closing high but now the support moves a notch higher near the previous high of $1920 which was retested in the week itself. A lower dollar remains the ultimate mover of gold prices currently above everything which is expected to further slide as the lasting QE support by Fed was reaffirmed in the meeting held on Wednesday. On the fundamental front, the pandemic continues to wreck havoc as it enters into 2nd wave for many countries pressuring them to rethink the reopening stance while global political drama remains loyal to providing its share of volatility. With the year’s most awaited and the biggest event – U.S elections coming nearer, orchestrated theater of sentiment manipulation gains momentum. To watch next week – BoE meeting, earnings and other important economic data.
On the chart –
Gold blazed past its all time high as the dollar picked up more steam on the downside literally having a melt down. Chart looks really encouraging even as its highly overbought since the retest of previous high was successful creating a major support and a best possible area (risk-reward wise) to initiate fresh longs in future until the structure changes. With probably every asset class in a buy mode except dollar due to ample liquidity its ideal for the gold prices to keep pacing ahead as its demand as safe haven and a requisite for banks/governments only continues to grow. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1989. If this is crossed it can move towards $2008. And if this is taken out it can rally to $2033.
2. Short bets remain mute in current scenario except scalp trades.
Bullish view – Bulls not only reclaimed the previous high but overpowered it with ease creating a fresh all time high negating any reversal scenario which was the only scare they had until last week on back of a fractured dollar. Nothing but the sharp fall in dollar helped swell the prices above the previous high opening up a new territory and this shall continue as the dollar remains in downtrend given its breakdown. Whilst the above move took away much attention from global scene, nothing has changed there either as the raging pandemic remains the catalyst for de-growth along with geopolitical issues old and new creating its menace. Fundamentals and technicals both strongly support higher gold prices with $2300 looking a reachable target in near to medium term.
Bearishness remains off the table.
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 $1989 for the targets of $2008 and $2033 with a stop loss placed below $1974. Longer term target $2061.
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 blazed past its all time high as the dollar picked up more steam on the downside literally having a melt down. Chart looks really encouraging even as its highly overbought since the retest of previous high was successful creating a major support and a best possible area (risk-reward wise) to initiate fresh longs in future until the structure changes. With probably every asset class in a buy mode except dollar due to ample liquidity its ideal for the gold prices to keep pacing ahead as its demand as safe haven and a requisite for banks/governments only continues to grow. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1989. If this is crossed it can move towards $2008. And if this is taken out it can rally to $2033.
2. Short bets remain mute in current scenario except scalp trades.
Bullish view – Bulls not only reclaimed the previous high but overpowered it with ease creating a fresh all time high negating any reversal scenario which was the only scare they had until last week on back of a fractured dollar. Nothing but the sharp fall in dollar helped swell the prices above the previous high opening up a new territory and this shall continue as the dollar remains in downtrend given its breakdown. Whilst the above move took away much attention from global scene, nothing has changed there either as the raging pandemic remains the catalyst for de-growth along with geopolitical issues old and new creating its menace. Fundamentals and technicals both strongly support higher gold prices with $2300 looking a reachable target in near to medium term.
Bearishness remains off the table.
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 $1989 for the targets of $2008 and $2033 with a stop loss placed below $1974. Longer term target $2061.
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 $2008
Comment:
Second long target met at $2033
Comment:
Third long target met at $2061