Gold Price Bounced Back – Will XAUUSD Break Above $1600?

Gold price bounced back from $1450 area and may continue the Bullish trend Further. Gold has tested the dynamic level of 200 EMA two times and bounced higher. Let’s check gold price technical analysis for more levels and insights.

March 18, 2020 | AtoZ MarketsThe price of gold has bounced back after rejecting the $1450 area and closed above $1500 with a daily Bullish pin bar. The price tested November 2019’s low, while almost engulfing the recent Bullish trend. The Gold is currently trading at $1510 area and struggling to push higher.

Gold price rise for the second day after the Central Banks and Governments announced that they would take further aggressive action to protect the economic fallout from the Coronavirus pandemic. Gold gained momentum after the Federal Reserve signalled to intervene in the short-term credit market, while the Trump administration was thinking to inject as much as $1.2. Trillion, and hand payment of 1000 dollar or more to the Americans within this month. As a result, Spot Gold rise 1.2% to $1546, Silver jumped 2.2%, and Platinum gained as much as 1.3% today.

Gold Price Bounced Back and May Continue Higher

The price of Gold is currently residing near $1510 area and trying to bounce off $1500 support level. XAU became quite volatile and corrective after Gold Bulls bounced back from $1450 key support level. Gold may now continue higher, if the price remains above $1500 area.

Gold Bulls Bounced Back - Will Price Break above $1600?

Image: Gold 4 Hour Chart

According to the 4-hour chart, the price is currently trading at $1510 area and pushing lower. After Gold broke above $1500 area, the Bears pushed lower and retrace down to $1500 again. If XAUUSD finds support at $1500 area, the Bullish pressure may continue further higher towards $1600 in the coming days.

Moreover, the MACD lines are residing below 0.00 level and had a Bullish cross over earlier. The Stochastic Oscillator lines are rising gradually upwards as the Bulls are gaining momentum. This did create certain Bullish Divergence in the Stochastic indicator but MACD is still neutral.

On the other hand, the dynamic level of 20 EMA is residing above the current price, which already worked as a resistance pushed the price lower. So, if Gold Bulls bounced back from $1500 area, the price needs to break above the dynamic level, along with the Kijun line and Tenkan line to recover further higher.

Read More – Oil Broke Below $27.50 Key Support – What Next?

Gold Bullish Trend may Climb Higher

According to the Daily chart, XAUUSD is currently residing near $1500 support area. Gold was quite impulsive and non-volatile with the recent Bearish trend but did not sustain further. XAUUSD has already bounced off $1500 area as well as 200 EMA while having a daily close above the price. As per the current price action, the Bulls may recover higher with the target of $1600 area, but in the long-term perspective, Gold has to break above $1600 to continue the Bullish trend otherwise XAU correct further inside the range.

Gold Bulls Bounced Back - Will Price Break above $1600?

Image: Gold Daily Chart

Moreover, the dynamic level of 200 EMA became a strong support for the price while Gold Bulls bounced back. Besides, the Stochastic Oscillator lines had a Bullish cross over below 20 level, which indicates certain Bullish momentum is in the making.

To conclude, Gold Bulls may find strong support at $1500 area. Despite having strong Bearish momentum, the price needs to break above $1600 area to continue the Bullish trend.

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