Gold Bulls extends gains and may continue higher towards the $1700 area. XAUUSD is becoming corrective and volatile after being rejected from the $1650 area. Let’s check technical analysis for more levels and insights.
March 5, 2020, | AtoZ Markets – The price of Gold has successfully been able to hold above the $1630 area. After an impulsive and non-volatile bullish move from $1585 support area, buyers were able to push the price higher towards $1650. If Bulls are able to maintain the current bullish momentum, the Gold price may continue higher in the coming days.
Gold Price Fundamental Highlights
Gold hawkish rally was paused after the U.S. stocks jumped on the news of Former Vice President Joe Biden big wins over Sen. Bernie Sanders on Wednesday. After an emergency rate cut by 50 basis points of the Federal Reserve, Gold jumped only 3% on Tuesday. The cases of Chinese Coronavirus in the U.S. rose on the triple-digit mark. Analysts are expecting that Gold upward move will continue further.
Ed Moya an Analyst at OANDA said, “The Gold rally is taking a break as Wall Street is back up.” On the other hand, CNBC’s Jim Cramer said on Wednesday, “I expected a mild recession based on weakness in travel and entertainment, but right now the oscillator is saying you should buy stocks, both short and long term.”
Gold Bulls Extends Gains may Push Further Upward
The price of Gold is now facing resistance at $1650 area after a strong bullish move. Currently, the price became corrective and volatile after the Gold Bulls extends gains. However, the Bullish pressure may continue further higher after a certain correction.
According to the 4-hour chart, Gold is now residing near $1640 and trying to push higher. The Gold came to the same corrective area, as it corrected before. If Bulls can break the corrective phase above $1650 area, it may continue further up towards $1690 again. The dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. It may work as a support to push the price higher. Moreover, the MACD lines are residing above 0.00 line and may maintain there if Gold Bulls extends gains.
Gold Bullish Pressure may Sustain Towards the Next Resistance
According to the Daily Chart, Gold is currently trading at $1640 area and sustained inside the Tuesday’s Bullish bar. After Gold finds support at $1585, Gold moved higher towards $1650 area. The bulls failed to break above $1650 area and had a Bearish daily close on Wednesday. The Bullish momentum is still on the market. If buyers are able to break above $1650 area, XAUUSD price may spike higher towards $1700 area in the coming days.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price but moving higher. It may become support for the upcoming Bullish pressure. The Kijun line and the Tenkan line also may work as a confluence of the dynamic level of 20 EMA. On the other hand, the MACD lines are residing above the 0.00 level for an extended period and gradually moving higher. It’s a good indication that Bulls may enter the market and sustain further gains.
To conclude, Gold may continue its corrective phase furthermore. If Bulls are able to break above $1650 corrective area, the Bullish momentum may sustain further upward towards $1700 in the coming days.