Gold Found Support at $1640 – Can Climb Higher?


Gold price rose during the London session after an extended period of volatility. Gold Found Support at $1640 – Can Climb Higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.

April 9, 2020 | AtoZ Markets – Gold is currently trading around $1660 area and aggressively pushing the price higher. The price has become quite impulsive and non-volatile after bouncing from $1640 area. As per the current price action, the bullish pressure is quite strong may sustain further in the coming days.

Gold price recovered more than 80% of the recent massive drawdown from $1700 because of Coronavirus pandemic. Moreover, Gold bulls struggled a lot during the Asian session but managed to break above the correction phase. Besides, U.S. Federal Reserve released the minutes from its unscheduled meeting on March 15 overnight, which add some boost to the Gold price. The unscheduled minutes indicate that the FED was aware of Coronavirus’s upcoming impact as they voted earlier to cut the interest nearly zero, and restart bond-buying programs.

On the other hand, the total COVID-19 cases rose to 435,160 in the United States of America, and the death toll rises to 14,797. The numbers are very shocking, but there is still hope after 22,891 people recovered from the disease.

Gold Found Support May Strike Higher as Safe-Haven

XAU/USD is currently trading around $1660 area after Gold found support at $1640. The current price action is quite impulsive to sustain further in the days ahead.

Gold Found Support at $1640 - Can Climb Higher?

Image: Gold 4 Hour Chart

According to the 4-hour chart, Gold is currently residing near $1660 area and trying to push higher. Moreover, the dynamic levels are acted as a strong support and hold the price above $1640 area. As per the current scenario, if the price sustains above $1650 area, the bulls may recover higher towards $1700 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. The dynamic levels may work as a strong support, which may help the bulls to climb higher in the future. Besides, the MACD lines are rising upward gradually by following the uptrend line and currently residing above the 0.00 level, which is indicating further bullish momentum in the process.

Read More – Why should You Trade Forex During a Recession?

XAU/USD Bullish Trend May Sustain Further

According to the Daily chart, Gold is currently trading around $1660 area after breaking above the last day’s indecision candle. After Gold found support at $1640 area, bulls gained the momentum again and strike higher. So, if the price maintains the bullish momentum further and breaks above $1675 area, the bulls may continue higher towards $1700 in the coming days.

Gold Found Support at $1640 - Can Climb Higher?

Image: Gold Daily Chart

Moreover, the price is moving upward towards the Bollinger Band’s upper band, which is currently residing near $1700 area. Besides, the MACD lines are residing above the 0.00 level, which may sustain further in the days ahead.

To conclude, Gold gained momentum after an extended period of volatility. Gold price may reach higher towards $1700 area, if the price can breaks above $1675 in the coming days.

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