Gold has been quite volatile but managed to sustain above $1600 area. Can Gold break its correction phase and push higher towards $1700 area? What are the charts and technical indicators are saying? Read more to find further insights into today’s Gold Technical Analysis.
April 6, 2020 | AtoZ Markets – Gold is currently trading around $1627 area and trying to push higher. After a break above $1600 area, XAU became volatile and indecisive but still has the potential to recover higher. On the other hand, Gold price rose a little bit on Monday morning, as traders turned conservative as of the continuous economic unrest.
Moreover, three Swiss refineries in Ticino, which is Europe’s biggest Gold refiner, announced recently that they received permission to continue their production on a narrow basis. As the COVID-19 initiated lockdown and transport stop, this announcement may ease the supply tightness. Besides, last Friday’s U.S. NFP and unemployment rate’s negative report may boost the Gold price to recover further in the coming days.
Gold Break Correction Phase May Recover Higher?
XAU is currently residing near $1627 area while Gold is trying to break above the correction phase. The bulls are trying to gain momentum as the bias remains constant. So, if the bulls can break above the current correction phase, the bullish bias may sustain further in the days ahead.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1627 area while the price is trying to climb higher. The price did somehow pushed higher, after the bounce from the rising trend line on the intraday chart, but how long it may sustain is still a question. As per current price action, if the price holds the bullish momentum and breaks above $1630 area with 4-hour candle, the bulls may recover higher towards $1650 in the days ahead.
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and Tenkan line. In this case, the dynamic levels may work as a strong support and continue to push the price higher. Besides, the Stochastic Oscillator lines were residing above 50 level, and had a bullish cross over, which is a good indication of a further upward move.
XAU Bulls Still Present in the Market
According to the Daily chart, the price is currently quite non-volatile and impulsive, while Gold trying to break its correction phase.
Image: Gold Daily Chart
As per current daily chart price action, if the price breaks above the $1650 area with a daily close, the bulls may recover higher towards $1700 area. Alternatively, if the price rejects the $1650 resistance area and decline, the bear may lead the price lower towards $1600 again.
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may act as a strong support along the way. In contrast, the dynamic level may pull the price lower towards $1600 as Mean Reversion, if the price rejects $1650 resistance area. Besides, the RSI line is rising upward by following the bullish trend line, which may add some confluence to further bullish pressure.
To conclude, Gold is currently quite impulsive with the preceding Bullish bias. So, if the price breaks above $1650 area with a daily close, the price may continue higher in the coming days.