Gold found support at $1560 and may continue the Bullish momentum. Gold is able to correct lower towards $1560 after rejecting the $1690 key area. Let’s check Gold Technical Analysis for more levels and insights.
March 2, 2020 | AtoZ Markets – The price of gold is successfully able to retrace lower after rejecting $1688 key resistance. The price is currently residing near $1600 area after Gold found support at $1560. Gold may continue Bullish momentum after a retracement, with the target of $1690 key area in the coming days.
Gold Price Fundamental Highlights
Gold gained momentum on today in Asia, as fears of the Global Coronavirus outbreak and hopes of a rate cut the United States Fed. The Bulls gains its bias after Asian stock equities rise today, with the Chinese stocks up more than 4%. The Chinese manufacturing last month at its fastest pace ever, as fears grow of a global recession from Coronavirus. Fed Chief, Jerome Powell said earlier, “The Central Bank will use our tools to support the economy, a strong signal of a coming interest rate cut.”
On the other hand, Vinod Nair, Head of Research at Geojit Finacial Service, said, “Gold has been shining bright as investors seek out the safe-haven asset, and price forecast also seems Bullish.” Last week Gold price action was natural because of profit-taking in place after an extended bullish momentum. The Coronavirus took place more than 40 countries; as a result, Gold may gain momentum again as the safe-haven market.
Gold Found Support may Continue Higher Towards $1690 Again
The price is currently residing near $1600 after retracing from $1560 area. Gold became volatile and corrective as the Bulls trying to push the price higher. However, the overall trend is Bullish, as Gold’s corrective phase is finished, Bullish momentum may sustain further.
image: Gold 4 Hour Chart
According to the 4-hour chart, the price is residing near $1600 area after Gold found support at $1560. The Gold became corrective as the Bulls are trying to push the price higher. If Gold makes a strong 4 hour close above $1600, Bullish pressure may continue higher towards $1690 key area again. The dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. It may pull the price higher and work as support if price break above the dynamic levels.
Moreover, the MACD line is residing near the 0.00 level and showing upward pressure. And the MACD histogram volumes are also residing below 0.00 line and slopping upward as Bulls are trying to gain the momentum again.
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Gold Bullish Trend may Continue Towards $1700 Area
According to the Daily chart, Gold is now trading at $1600 area. After retracing from $1560 area, buyers pull the price higher to continue the Bullish trend. If Bulls can have a Daily close above $1600 area, the Bullish trend may proceed further with the target of $1700. The dynamic level of 20 EMA is also residing near the price, which may work as strong support for Bulls.
image: Gold Daily Chart
Moreover, the Kijun line and Tenkan line are living above the current price. If the price is able to break this dynamic levels, it may become support as well. Additionally, the MACD lines are above 0.00 line, which is a good indication that Bulls may able to take over the market soon.
To conclude, If Gold has a daily close above $1600. It may continue its Bullish trend towards $1700 key area in the coming days.