Gold has been quite non-volatile and impulsive at the beginning of this week. Gold price broke above $1700 key level, can XAU climb further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 14, 2020 | AtoZ Markets – Gold is currently trading around $1710 area and trying to retest $1700. Moreover, Gold broke above $1700 area quite impulsively, and had a daily close above it. As per the current scenario, XAU/USD has the potential to continue the bullish trend further in the days ahead.
Gold climbed at the highest level of 2012 on concern that the COVID-19 pandemic may harm the global economy further. Moreover, the Coronavirus is continuously hurting the corporate earnings, which let the investors to find safe-haven markets like Gold. Besides, bullion has increased as the outbreak signalled economics into recession, and speed up central banks and governments to launch stimulus packages. That indicating futures are now approaching towards $1800 an ounce after recovering from $1400 at the lowest level.
On the other hand, Futures rose as much as 1.1% to $1779.90 an ounce, and traded at $1778.50 during the Asian session. Moreover, Spot Gold was more than $50 inexpensive at $1725.03 an ounce.
Gold Finally Broke Above the Key Resistance Level
XAU/USD is currently residing near $1710 area and trying to retrace down. Along with, Gold again proved itself as a safe-haven market as the Coronavirus pandemic pushing the world economy into the recession.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1710 are and trying to decline. The price impulsively move upwards by following the bullish trend line, and the dynamic level add some confluence to the price action. As per the current price action, the bears may push the price lower at least towards $1690 area for a retracement. So, if the price retraces down to $1690 area and bounces, the bulls may continue the bullish trend towards $1750 next resistance level.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support as earlier. Besides, the MACD lines are rising upward gradually, which may sustain further in the coming days.
Can XAU Reach $1750 Area?
According to the Daily chart, Gold broke above $1700 area quite aggressively and currently trying to retrace down. As per the current scenario, XAU may push lower at least towards $1690 area before bulls continue the bullish trend. So, if the price retrace down to $1690 area and have a daily close above it, the bullish trend may sustain further towards $1750 area. Alternatively, if the price broke below $1690 area with a daily impulsive close, the bears may regain momentum and push the price lower towards $1640.
Image: Gold Daily Chart
Moreover, the dynamic level is currently residing below the price, along with the Kijun line and the Tenkan line. The dynamic levels may pull the price as a Mean Reversion. Along with, the Stochastic Oscillator lines are rising upside gradually and currently residing above overbought level 80, which may have a bearish cross over soon.
To conclude, Gold has regained momentum as a safe-haven market amid this Coronavirus pandemic. The bullish trend may sustain further in the coming days, if the bulls maintain the price above $1700 area.