Gold Maintained Bullish Momentum may Reach $1600 soon. Despite the recent volatility below price $1578, Bulls regaining momentum again. Let’s check Gold Technical Analysis for more levels and insights.
February 14, 2020 |AtoZMarkets.com – Gold is currently residing below $1578 event-level area after an impulsive bullish momentum. The dynamic level of 2o EMA is holding the price toward the upside. If price managed to break $1578 area it will push higher $1600 soon.
The financial market remains unpredictable of the uncertain new coronavirus cases, but people still have the confidence that gold prices may push higher. Gold favored as a safe-haven to trade beside other commodities like oil, silver, copper, etc in this coronavirus situation. If the virus could still hold its peak in the coming days, the global economy could trigger a weakening dollar that will ultimately support commodity price.
China on Thursday reported that deaths and infections from a new virus were effecting faster, which spread more than 20 countries. Moreover, if Coronavirus keeps effecting the world economy gradually commodity market will be very affected. It may lead the Gold price higher if Gold continues bullish momentum. Although the marginal day-to-day flow is driven by the change in risk sentiment, Gold may be considered as the most safe-haven currently.
Gold Bullish Momentum held by Dynamic Level
Gold is now residing below $1578 area which a strong event level. The dynamic level of 20EMA is supporting the price to continue Gold Bullish momentum. If price successfully breaks above $1578 area, it is expected that the price may move higher with the target of $1600.
image: Gold 4 hour chart
According to the 4 hour chart, Price maintained to keep the pressure while correcting above the dynamic level of 2o EMA. The price is moving higher by rejecting the rising trend line which is a pre-breakout scenario. The Kijun line and Tenkan line also holding the price as a dynamic support level, and the Kumo Cloud is also near the resistance $1578 area which is also a good sign for the bullish momentum.
Additionally, the MACD line is also going upward as the price gaining momentum slowly. Histogram volumes are also favorable as the MACD line is residing above the 0.00 level. Moreover, Gold Bullish momentum will continue if the price can break the resistance area $15678.
Gold may Correct before Push Higher
image: Gold Daily chart
Gold currently quite impulsive with the Bullish momentum. According to the daily chart, the price is currently residing above $1570 support after the Thursday market close with a Bullish candle. Currently, the dynamic level of 20 EMA holding the price as a support. Additionally, Kijun line and Tenkan line are also holding the price as confluence. So, it is a good sign for the Bulls to dominate further and reach expected target towards $1600 area.
To conclude, Gold is heading higher toward $1600 area as the price remains above $1560 area. The Gold Bullis momentum may correct before it pushes to our expected area.