Good morning Traders and welcome back to my page at the wake of this London session!
Gold is currently trading at around 1450 against the US Dollar during today's London session.
Taking a look at the monthly timegrame we can see heavy bullish momentum for Gold which started in May and has followed suit. In the previous month of July we saw a rejection of our monthly rejection at around our 1420.00 monthly resistance level however a very heavy bullish start in the month of August for Gold which totally broke through this as well as reaching new highs above 1450 which was a level I previoously had as a target. On to the weekly timeframe, we have a clear bullish candlestick which closed above the same 1420.00 level with a clear rejection of our EMA. On to the daily timeframe price hasn't yet broken upward of our flag although my bias is that it will since it broke the new highs of 1450.00.. For buyers to find further momentum to the upside, price needs to break above that. The risk for a downside move is if price starts to fall back below the channel and our key psychological level at around 1400.00 as well.
Price can potentially stall around 1470.00 before reaching our next monthly resistance of 1500.00.
The break higher in gold here could be the start of a larger trend higher towards $1,500 first before aiming for $1,600 and beyond. The continued slowdown in the global economy and central banks easing monetary policy further - prompting bonds to rally i.e. yields to fall. As long as that remains the case and US-China trade tensions fail to be resolved, the run higher in gold still has room to go.
Gold is currently trading at around 1450 against the US Dollar during today's London session.
Taking a look at the monthly timegrame we can see heavy bullish momentum for Gold which started in May and has followed suit. In the previous month of July we saw a rejection of our monthly rejection at around our 1420.00 monthly resistance level however a very heavy bullish start in the month of August for Gold which totally broke through this as well as reaching new highs above 1450 which was a level I previoously had as a target. On to the weekly timeframe, we have a clear bullish candlestick which closed above the same 1420.00 level with a clear rejection of our EMA. On to the daily timeframe price hasn't yet broken upward of our flag although my bias is that it will since it broke the new highs of 1450.00.. For buyers to find further momentum to the upside, price needs to break above that. The risk for a downside move is if price starts to fall back below the channel and our key psychological level at around 1400.00 as well.
Price can potentially stall around 1470.00 before reaching our next monthly resistance of 1500.00.
The break higher in gold here could be the start of a larger trend higher towards $1,500 first before aiming for $1,600 and beyond. The continued slowdown in the global economy and central banks easing monetary policy further - prompting bonds to rally i.e. yields to fall. As long as that remains the case and US-China trade tensions fail to be resolved, the run higher in gold still has room to go.