Gold Bulls regained momentum and currently pushing the price above $1550 area. After the price bounced from $1480, XAU became impulsive and non-volatile. Let’s check Gold Technical Analysis for more levels and insights.
March 24, 2020 | AtoZ Markets – Gold is currently residing near $1570 area after breaking above the $1550 resistance. As the price remains above $1550 area, the Bulls may take the price higher in the coming days.
Gold pushed higher after the Federal Reserve took a novel measure to limit up the U.S. economy, which has hit by the Coronavirus outbreak. The U.S. Central Bank said, “It would buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at rock-bottom levels, aiding bullion which doesn’t offer interest. It also set up programs to ensure credit flows to corporations as well as state and local governments.”
Furthermore, investors are waiting for the United States lawmakers to deliver fiscal incentive packages to defend the COVID-19 outbreak and its effects on the U.S. economic crisis. Moreover, many countries are going into lockdown to prevent the spreading of Coronavirus pandemic, which has already harmed the world’s economy.
Gold Bulls Regained Momentum as a Safe Haven
XAU is currently trading at $1570 area and trying to recover higher. After Gold Bulls regained momentum, the price became impulsive and closed above $1550 area. In this case, the Bulls may recover higher in the process.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the price of Gold is currently residing near $1570 area and pushing lower. Gold broke above $1550 area but held by the Kumo cloud may now decline for retracement. So, if the price decline towards the Senkou Span A near $1530 area and find support, the Bulls may push the price higher towards $1600 in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and Tenkan line. As a result, the dynamic levels may pull the price down to revert back to the Mean. The Kijun and Tenkan lines may work as a confluence of the dynamic level. On the other hand, the Stochastic Oscillator lines are residing above the oversold level 80 having a Bearish Cross indicating certain Bearish pressure is in the making.
Gold Still Indecisive Above $1550
According to the Daily chart, XAU is still indecisive as per recent Bearish move discharged the Bulls in the process. Gold Bulls regained momentum and broke above $1550 but currently facing resistance from the dynamic level of 20 EMA. As per current price action, if the price sustains above $1550 area with a daily close, the Bullish pressure may recover towards $1600 or higher. Though the overall momentum is still Bearish, a daily close below $1500 area may lead the price down towards $1455 again.
Image: Gold Daily Chart
Apart from this, the MACD lines are residing below 0.00 level and may have Bullish cross over. MACD Histograms are squeezing higher but still indecisive about upcoming outcome. The RSI indicator line is residing middle of the overbought and oversold level while moving upward. It is currently showing no definite indication for the upcoming move.
To conclude, Gold Bulls did regain certain momentum along the way but its sustainability is not confirmed yet. So, if the price resides above $1550 with a daily close then Bulls may sustain further.