Gold has become non-volatile and impulsive after bouncing from $1700 area. Gold may break above the psychological level $1750 area as the U.S. – China conflict rises. What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
May 28, 2020, | AtoZ Markets – Gold is currently trading around $1720 area and trying to push higher. The price broke above the dynamic level of 20 EMA on the intraday chart. As per the current scenario, XAU may face resistance at $1730 area before finding any definite momentum.
Gold price rose today during the Asian session as the U.S – China tension led investors to the safe-haven asset. Moreover, Hong Kong and Macau was the new edge for the U.S. and China, as people of Hong Kong saw a return to protest earlier in the week. Besides, U.S. Secretary of State Mike Pompeo said earlier, “Hong Kong no longer will qualify for its special status under the U.S. law.” This loss of the special status also threatens Hong Kong’s future.
Gold May Break Higher as Investors Seeking for Safe Haven Asset
XAU is currently residing near $1720 area and trying to climb higher. Moreover, Gold may break above $1750 area but may face strong resistance at $1730 before sustain further in the coming days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, XAU is currently trading around $1720 area after bouncing from $1700 support level. As per the current price action, if the price reaches $1730 area and rejects, the bears may push the price down towards $1700 again. Alternatively, if the price breaks above $1730 area with an impulsive 4-hour close, the bullish pressure may sustain towards $1750 in the process.
Furthermore, the dynamic level of 20 EMA is currently residing near the price and the Kijun line and Tenkan line residing below the price. The dynamic levels may work as strong support in the coming days. Besides, the Kumo cloud is currently residing above the price, which may work as strong resistance as well.
XAU Bulls Are Optimistic May Recover Higher
According to the daily chart, XAU is currently residing near $1720 area and trying to recover higher. Moreover, the price bounced from the uptrend line support, which has nearly $1700 area.
Image: Gold Daily Chart
As per the current price action, if the price can have a daily bullish close above the dynamic level of 20 EMA, the bulls may recover higher towards $1750 area. In addition, if Gold breaks above $1750 area, the bulls may push the price higher towards $1800 in the coming days. In contrast, the bears may push the price down towards $1700 area, if the price rejects $1750 resistance area.
Moreover, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support in the process. Besides, the Stochastic Oscillator lines are residing below the overbought level 80 and rising upward. It indicates bulls are quite strong may sustain further.
T0 concludes, amid Coronavirus pandemic situation Gold has become the most reliable and safe-haven asset for the investors. A daily close above $1750 area will help to find the definite trend in the coming days.