Gold Continues Bullish Run above $1585 may Reach $1600 soon. Despite the recent correction, Bulls regained momentum and heading higher toward $1600 area. Let’s check Gold Technical Analysis for more levels and insights.
February 18, 2020 | AtoZ Markets – Gold is currently residing above $1585 area with strong impulsive Bullish momentum. After a recent bounce from $1580 area, Gold Bullish maintained momentum quite well, which may lead higher toward $1600 area again.
The spreading of Coronavirus, China imposed tightened restrictions on movement in the Hubei province, which let the Gold price slipped. Additionally, 60 million people in the Hebei province have been told to stay at home unless there is an emergency. According to the South China Morning Post, only one person from each household is allowed to leave the building every three days to buy food and essential items.
Gold prices are at the top since February 3 despite recent news released. A number of countries are planing extra fiscal stimulus measures to shore up their economies from the virus effect. According to Bloomberg, Bullion prices are at their highest in the last seven years, which closing in on $1600 an ounce.
Gold Continues Bullish Run with the Support of Dynamic Levels
Gold is currently residing above $1585 area with the support of Dynamic levels. The Gold is leading higher toward $1590 resistance area where it may hold for a certain period before it pushes more higher.
image: Gold 4 Hour Chart
According to 4 hour chart, the price is now residing above $1585 area heading toward the next resistance $1590. The dynamic levels like 2o EMA, Kijun line and Tenkan line are also residing below the price as support. Additionally, MACD lines also above 0.00 line also indicate further upward pressure which acts as a confluence currently. Gold continues Bullish run quite well after the recent retrace from $1585 area. As the Bullish run continues further, the price may consolidate near $1590 resistance area before Gold reaching $1600 area in the coming days.
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Gold may Face Resistance at $1590
image: Gold Daily Chart
Gold is currently quite impulsive with the Bullish momentum. After Gold recent retest at $1580 area, the price gained impulsive momentum. According to the daily chart, the price is currently residing above $1585 area but may find resistance at $1590 area. Before reaching $1600 target area, Gold Bullish run may pause at $1590 resistance before reaching $1600 area.
Additionally, MACD lines residing above 0.00 line also a good indication of further upward pressure. The histogram volumes are also going upward while the Gold continues Bullish pressure. The dynamic level of 20 EMA, Kijun line, and Tenkan lines also act as a confluence.
To conclude, Gold is heading higher toward $1600 area as a target but may find resistance at $1590. As the price remains above $1585 area with a daily close, the Bullish bias may continue further.