GOLD is above $1550 and pushing higher towards $1600-50 area. After the recent bounce off the $1535 area, the gold bullish momentum is increasing. Check today’s GOLD Technical Analysis for more insights.
January 15, 2020 | AtoZMarkets.com – Gold has managed to push above $1550 area after the bounce off $1535 recently. The price is currently heading higher with target towards $1600-50 resistance area and may create new high in the process. As the Gold retraced towards $1535 area earlier, we expected the price to bounce back higher and continue the bullish rally.
Currently, GOLD above $1550 and pushing higher in the process is an indication of further sustainable upward pressure. According to reports, US has agreed to keep the tariffs on Chinese Goods unchanged until the Presidential Election on November 2020. Moreover, the US-Iran tension has also gone down as both countries has decided not to go for war.
As per previous context, GOLD was considered safe to invest while U.S. and Iran conflict rose. Though the overall situation is still quite indecisive, GOLD gains may slow down in the process. Recently, GOLD futures gained 0.6% being above $1550 area which may push higher in the coming days.
GOLD Technical Analysis – January 15, 2020
The price bounced off the $1535 area with precision and currently residing above $1550. Currently, GOLD is above $1550 and pushing higher quite impulsively after breaking above the dynamic levels as well. The dynamic level 20 EMA, Tenkan line and Kijun line is currently residing below the price while Kumo Cloud may hold the price. Furthermore, the price has also formed Bullish Continous Divergence along the way.
image: Gold 4 Hour Chart
As the price progressed lower, the MACD Histogram created higher low and MACD Lines are at the verge of having a bullish cross. MACD lines are currently below 0.00 and a bullish crossover along with Divergence is working as confluence. As a result, the probability of GOLD pushing higher towards $1600-50 area has increased.
Gold Bullish Momentum Pushes Prices Higher
image: Gold Daily Chart
On the daily chart, the price action context is bit different. The price did not form any lower shadow in the daily candle and may correct along the way. MACD lines are at the verge of making a Bearish cross with no sign of Bullish slope. The Kijun line is flat at $1535 area which might act as strong support whereas the Tenkan line is higher than the price line. Moreover, the dynamic level of 20 EMA is also about to join the Kijun line around $1535 area.
According to Daily Chart, there are still certain room for correction in GOLD which might not harm the overall bullish bias. After breaking above the range between $1450 to $1535, currently the price is strongly bullish and have higher probability to push upward.
As the U.S. Iran War has come to a decision, investors are currently heading towards other investments. As a result, gains on GOLD is expected to slow down though the bias is still strong.
To Conclude, GOLD may correct for a certain period before it manages to sustain the bullish momentum and head towards $1600-50 resistance area in the coming days.