Gold breaking records higher residing above $1660 as markets open with a gap. Bullish pressure may continue further towards $1700 area. Let’s check Gold Technical Analysis for more levels and insights.
February 24, 2020, | AtoZMarkets – Gold creates a new high at $1680 key area with a consistent impulsive move after Monday open with a gap. Price is currently residing above $1660 area as Bullish pressure continues. Gold is making higher highs continuously as it proves itself as safe-haven in this Coronavirus situation and Global economic breakdown.
As the Coronavirus impacting the Global economy, Gold markets rise as a safe-haven commodity. Citigroup said that Gold may hit $1700 and may also continue towards $2000 area in upcoming months. Additionally, Citigroup precious metal analyst Ed Morse said, “Gold will outperform on a risk market unwind should Coronavirus risks impacts supply chains and thus the U.S. earning momentum. “
On the other hand, China is easing some restrictions in the Wuhan province and will allow non-local residents to leave the city at the centre of the outbreak. Moreover, Guangdong, which has the most confirmed Coronavirus infections after Hubei, lowered its emergency response level from its highest this morning. Outside of China, Iran’s government confirmed 43 cases and Italy has 152 cases, while South Korea confirmed 763cases of the virus.
Gold Breaking Records Higher may Reach $1700 soon
As per current price action, Gold may push higher towards $1700 area. The dynamic level of 20 EMA is residing near $1630, which may pull the price down as Mean Reversion. If Bullish momentum continues, the price may reach a record high of 2013 at $1700 area.
image: Gold 4 Hour Chart
According to the 4-hour chart, the Gold is currently residing above $1660 area. Gold expected to push the price down toward $1630 before it continues pushing higher with the support of dynamic level 2o EMA. Additionally, the Kijun line and the Tenkan line may also work as a confluence of the dynamic level 20 EMA.
Additionally, the MACD line is residing above 0.00 level from an extended period. The histogram volumes are also working as confluence of MACD line, which creates a convergence as the price pushing higher.
Read More – Oil Started with Gap Pushed Towards $51.50 Again
Gold Bullish Momentum may Continues Higher
According to the Daily chart, Gold is currently impulsive and non-volatile with the Bullish trend. After Monday open with an almost 100 pips upward gap, Bullish pressure sustained. As price retraced from $1580 area, price pushed higher as expected. Bullish pressure dominated the Gold very well, which led the price toward $1680 area impulsively.
image: Gold Daily Chart
Moreover, the price is moving higher after the MACD line crossed upside as confirmation for the Bullish momentum. The MACD histogram volumes are also showing Bullish pressure as the price sustain upward move as confluence.
To conclude, the Gold may push higher if it breaks $1680 area with the target of $1700. Gold may reach higher toward $1750 area in upcoming days.