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Gold Continues Bullish Run - May Create Another Record High?

Gold Continues Bullish Run - May Create Another Record High?

Gold continues the Bullish run and may create another record high. After XAU bounced from $1480 area, the Bulls became very impulsive and non-volatile. Let’s check Gold Technical Analysis for more levels and insights.

March 25, 2020 | AtoZ Markets – Gold is currently trading around $1600 area and pushing lower. After an extended period of Bullish momentum, XAU may retrace lower now. The Bulls may still sustain further after retracement in the coming days.

Gold continues to rise in the Asian session today and reach near $1600 area. XAU jump during the U.S. session, after the U.S. Senate announced a massive deal stimulus package to defend the Coronavirus outbreak. Additionally, the U.S. Federal Reserve made an announcement to purchase unlimited amounts of Treasury bonds and mortgage-backed securities and also support Gold to climb higher.

On the other hand, COVID-19 is still hampering the Global Economy. Many countries are trying to make Coronavirus’s antidote to recover from this crisis. Moreover, the death tolls are increasing day by day while the COVID-19 affected Italy after China. Italy reported a thousand of deaths till now, which crossed China’s death record. The global economy is still uncertain as governments are locking down the countries.

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Gold Continues Bullish Run but May Retrace Now

XAU is currently trading around $1600 area and declining. The price faced resistance at $1640 area after an extended period of Bullish pressure. Gold may now retrace lower before Bulls continue the Bullish rally in the coming days.

Gold Continues Bullish Run - May Create Another Record High?

Image: Gold 4 Hour Chart

According to the 4-hour chart, the price of Gold is currently residing near $1600 area after facing resistance at $1640. After Gold break above $1550 area, the Bulls pushed the price higher towards $1600. As per current price action, the price may retrace down towards $1550 area before Gold continues the Bullish run.

Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line. As a result, the dynamic level may pull the price down to revert back to the Mean, 20 EMA. The Kijun line may work as a confluence to the dynamic level for holding the price higher. Besides, the MACD lines are residing above the 0.00 level, which indicates Bulls are still quite strong to continue further.

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Gold Retracing Lower Can Empower Bulls Further

According to the Daily chart, the price is currently quite impulsive and Gold may continue the Bullish run in the process. After an extended period of Bullish momentum, the price usually requires a retreatment to regain momentum for further continuation. So, if the price decline and retrace towards $1550 area and finds support, the Gold may sustain higher towards $1700 area.

Gold Continues Bullish Run - May Create Another Record High?

Image: Gold Daily Chart

Moreover, the dynamic level of 200 EMA is residing below the current price while 20 EMA is residing around $1550. In this case, if the price maintains above the dynamic level in future, the Bullish momentum may sustain further. Besides, the MACD lines are residing below the 0.00 level, at the verge for a Bullish cross over. On the other hand, the RSI indicator line recently broke above the descending trend line, which is a good indication of further Bullish momentum.

To conclude, Gold Bullish Trend is still quite intact and may sustain the momentum further. Despite the recent Bullish pressure, Gold may retrace lower before continues the Bullish Trend in place. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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