Gold price rose after price bounced from $1670 area during the Asian session today. Can Gold bulls climb higher towards $1700 this time? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 13, 2020 | AtoZ Markets – Gold is currently trading around $1690 area and trying to push higher. Gold bullish trend has been quite non-volatile and impulsive, which bring the price near the key level of 9th March, 2020. As per the current price action, the bullish pressure is quite strong may sustain further in the days ahead.
Gold bulls have already recovered 98% of the recent drawdown. Gold again proved itself as a safe-haven asset amid this COVID-19 pandemic. Moreover, Gold bulls climbed higher after the U.S. Federal Reserve cut the interest rate for the second time, and make a decision to inject a 2.3 trillion dollar stimulus package to fight against Coronavirus. This package will help to credit the corporations, small business, commercial mortgages, states, municipalities and also consumers. Besides, the FED also signalled to purchase unlimited treasuries and mortgage-backed securities in the near future.
On the other hand, the death toll for Coronavirus is rising gradually in the United States of America, which is currently at the top of all other countries. The total number of infected is currently 560,433, and number of deaths are 22,115. Moreover, total 32,634 people recovered from the disease.
Gold Bulls Climbs Higher Consistently
Gold is currently residing near $1690 area and trying to climb higher. After bounce from the $1650 area last week, Gold bulls hold the momentum above $1688 area.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently trading around $1690 area and trying to continue further. As per the current price action, if the price sustains above $1688 area with a 4-hour close, the bulls may take the price higher towards $1700 area. It should be noted, if the price pushes lower and close below $1688, the bear may regain momentum and sustain towards $1650 in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may pull the price as Mean Reversion. Alternatively, if the price bounce from the dynamic level, the bulls may sustain further. Besides, the MACD lines are rising upwards gradually, and currently residing above 0.00 level.
XAU/USD May Reverse After Forming a Double Top
According to the Daily Chart, Gold bulls climb higher after the price bounced from $1670 area. Currently, Gold trading around $1690 area and may sustain further higher towards $1700. So, if the price reaches $1700 area and rejects, the bears may regain momentum and push the price lower towards $$1670 in the days ahead.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is reading far below from the price, which may pull the price higher back to the Mean. Besides, the Stochastic Oscillator lines are residing near overbought level 80 and may have a bearish intersection in the coming days which may add confluence to the upcoming Bearish intervention.
To conclude, Gold still has the potential to climb further towards $1700 area. So, if the bulls reach at $1700 area and rejects, the bears may regain momentum in the process.