Gold may Correct Lower Continuing the Bullish Run Toward $1600. The price may fluctuate for a certain period but may sustain Bullish pressure. Let’s check Gold Technical Analysis for more levels and insights.
February 17, 2020| AtoZMarkets.com – Gold is currently residing near $1585 which may act as a resistance. Gold may also correct lower to $1575 area and find support for upcoming Bullish pressure. Last week, Bulls are able to hold the price above $1575 area, which is a good indication that price might be going further up towards $1600 area.
Last Friday, the Gold market had a strong Bullish day, which leads the price higher closing against the Euro and Japanese yen. The new highs in Gold against the two major currencies are an indication of Gold growing investment appeal as a safe-haven commodity. Moreover, Marc Chandler, Director of Bannockburn Global, said that the dollar is driving the Gold market to move higher, while other currencies are struggling.
According to McGlone, Senior market strategist at Bloomberg said the record high in Gold in other currencies as likely the result of increasing weakness in the forex market. However, Gold had a good year so far with the achievement of 3%. McGlone said that equity market correction may drive Gold back to its 2011 high. It’s maybe a matter of time Gold revisits its highest peak at about $1900.
Gold Bullish Momentum may Continue After Correction
Gold is now residing below $1585 area which may correct toward $1575. The dynamic level of 2oEMA may hold the price as support. Moreover, the Kijun line and Tenkan line can also act as a strong dynamic support alongside the 20 EMA. If price retest $1575 area Bulls may push the Gold higher toward $1600.
image: Gold 4 hour chart
According to 4 hour chart, Gold price is now residing below $1585 area. Gold may correct lower toward $1575 area before it push higher. Bulls successfully hold the price above $1575 area last week, which is a good indication that Bulls are still present in the market and may continue with the Bullish trend higher.
The dynamic level of 2oEMA may hold the price as support as the price retrace lower. The Kijun line and the Tenkan line has been acting as good support and may continue doing so. If the price retest $1575 area, certain upward pressure may occur. Though the price is still Bullish but certain retrace may empower the Bulls. On the other hand, the MACD line is also showing upward pressure as the price following the rising trendline.
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Gold may Correct Before Push Higher
image: Gold Daily Chart
According to the Daily chart, Price successfully closes above $1575 area with a daily candle last week. Gold may correct lower before Bulls are taking the price toward $1600 area. However, the dynamic level of 2oEMA, Kijun line, and the Tenkan line in the Daily chart, are also holding the price as support. MACD histogram bearish volumes are also decreasing as the Bulls are holding the momentum. Overall the Bullish momentum is still on the market to take the price toward $1600 area or higher.
To conclude, Gold is heading higher toward the $1600 area as the price remains above $1575. But the Bullish momentum may correct lower before it continues the Bullish run.