Gold Reaches Highest Peak? Bulls managed to push price above $1562 area in an impulsive manner. The price is currently pushing higher towards $1610 peak area while residing above $1558 area. Let’s check Gold Technical Analysis for more levels and insights.
January 21, 2020 | AtoZMarkets.com – Gold managed to sustain the Bullish momentum above $1558 area. It pushed above $1562 area with an impulsive bullish pressure. The price is heading higher in a non-volatile way carried by the dynamic level 20 EMA.
Recently, International Monetary Fund published depressing outlook for the year 2020. IMF indicated rising of geopolital tensions specially between U.S. Iran, Trading War and economic frictions between countries for the negative overview. As a result, the Global growth may be slow this year reducing from 3.4% to 3.3% this year. Furthermore, IMF also cut the expectation of 2021 from 3.6% to 3.4%. Due to slowdown in India and emerging negative factors, the number might go down further.
Global economic slowdown and certain tensions among countries is considered to help GOLD to climb higher. As investors look for safe place to invest and gain, GOLD is currently safer than other instruments. Despite the fall of Equity market, GOLD may reach the peak price $1610 in the coming days.
GOLD Bulls Optimistic about $1600 and above
GOLD managed to sustain the bullish momentum despite certain corrections along the way. The price consolidated at the edge of $1562 before finally breaking above it impulsively. The price is currently correcting again after the break at the edege of $1566. Though the dynamic levels have carried the price higher since the price pushed above $1550, it may pull the price lower for Mean Reversion.
image: Gold 1 Hour Chart
Currently there is no sign of Bearish Divergence in 1 Hour chart which does indicate the strength of Bulls to pile up further. The long-term Bullish trend is still very strong and Bulls optimistic view may push the price towards $1600 and above in the coming days. So, in this case, the price may retrace lower towards $1562 again before continuing the Bullish run with the target unchanged.
GOLD Reaches Highest Peak Again?
GOLD has been quite consistent with the Bullish Momentum since it bounced off the $1535 area. As the price bounced higher off $1450 area earlier, current retrace is the place for getting ready for a higher jump. The Bulish pressure is currently slower than expected which might lead to certain corrections as the Bulls may face barriers at $1562.
image: Gold Daily Chart
MACD is currently showing a cross over above 0.00 signalling a Bearish pressure in the making. The Tenkan line has moved lower significantly while Kijun line remained flat. The Bullish Divergence pushing the price higher off the $1450 area is still quite active. Though certain consolidation may take over before the price move higher. The dynamic level 20 EMA can lead to certain retrace lower as per Mean Reversion but the bias will remain Bullish.
To Conclude, GOLD may consolidate at the edge of $1562 before pushing higher towards $1600 or above.