Gold remained confined in its range with repetitive moves which not only solidified the demand area but also threw light over the resilience of the price to fall below the support even after 2nd vaccine news mirroring the last week’s move. With the vaccines rolling out in such a manner it might itself create a totally new wave of geopolitical rift over the availability and usability as most large economies are in later stages of trials of their vaccine candidates, also it should not be seen as the pandemic risk to be over soon due the vaccines as another news flow remains attached to this development of the coronavirus being a genetically evolving one where these vaccines might not be sufficient in longer run or totally. Coming to the pandemic, its unleashing even more pain with increased death toll as record surges are seen in fresh cases across the globe with hospitals/medical facilities in many developed countries getting overwhelmed which is a matter of great concern. Apart from the ongoing catastrophe, political developments too continued playing its part in contributing to uncertainty as Donald Trump is refusing to concede even after recounts failed to change the outcome still keeping the air foggy over smooth transition and his policy stance in the remaining days of presidency. Yet again all situations point towards a higher gold price with uncertainties looming at large. To watch next week – Brexit drama and other important economic data.
On the chart –
Gold more or less repeated last week’s move as it bounced off from the support again even after a 2nd announcement of vaccine clearly suggesting the trend. These bounce backs after quite sharp fundamental led falls definitely point towards a bottom creation and holds the key to the reversal as technicals remain sound for higher prices with most pattern breakouts remaining intact. We have 2 scenarios-
1. Gold closed above the support, till this is held it can go to $1875. If this is crossed it can move towards $1886. And if this is taken out it can rally to $1901.
2. Bearishness yet again failed to capitalize except scalp trades.
Bullish view – Bulls had a repeat of the last week where the price declined sharply over the news of 2nd vaccine but recovered equally fast after bouncing off from the support zone which clearly suggests that bulls continue to remain in the driving seat even after these pullbacks. Such a move only strengthens the trend as supports gets solid after continuous retests. Bulls remain fundamentally buoyed as well since pandemic is refusing to soften even a tiny bit rather its inflicting more pain due to weather conditions (as expected) while other geopolitical worries remain elevated. Technically, gold looks to have created a bottom and is expected to head higher till this zone holds.
Bearishness continues to remain out of context.
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 $1879 for the targets of $1886 and $1901 with a stop loss placed below $1869. Longer term target $1921.
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 more or less repeated last week’s move as it bounced off from the support again even after a 2nd announcement of vaccine clearly suggesting the trend. These bounce backs after quite sharp fundamental led falls definitely point towards a bottom creation and holds the key to the reversal as technicals remain sound for higher prices with most pattern breakouts remaining intact. We have 2 scenarios-
1. Gold closed above the support, till this is held it can go to $1875. If this is crossed it can move towards $1886. And if this is taken out it can rally to $1901.
2. Bearishness yet again failed to capitalize except scalp trades.
Bullish view – Bulls had a repeat of the last week where the price declined sharply over the news of 2nd vaccine but recovered equally fast after bouncing off from the support zone which clearly suggests that bulls continue to remain in the driving seat even after these pullbacks. Such a move only strengthens the trend as supports gets solid after continuous retests. Bulls remain fundamentally buoyed as well since pandemic is refusing to soften even a tiny bit rather its inflicting more pain due to weather conditions (as expected) while other geopolitical worries remain elevated. Technically, gold looks to have created a bottom and is expected to head higher till this zone holds.
Bearishness continues to remain out of context.
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 $1879 for the targets of $1886 and $1901 with a stop loss placed below $1869. Longer term target $1921.
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.