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Forex

Gold price soars to $1535 amid market panic and global growth woes

Gold price soars to $1535 amid market panic and global growth woes

Gold price extends its bullish momentum into a second straight day on Tuesday, having found a strong support near $1500 mark a day before.

13 August 2019 | SQUARED DIRECT – After advancing to its highest level since April 2013 at $1510 last Wednesday, the XAUUSD pair moved sideways near the $1500 mark on Thursday and Friday and finally broke to a 6-year new high at $1519.37 after a difficult battle with the $1506 resistance level.

On top of the ongoing US-China trade conflict, escalating tensions in Hong Kong, Argentine currency crash, Italian political risks and global economic slowdown ramp up the demand for traditional safe-havens such as the precious metal. Reflecting the markets’ willingness to stay away from risky assets.

Meanwhile, falling US Treasury bond yields and reports of the Federal Reserve considering the option to use countercyclical capital buffers if the economy were to show signs of overheating weigh on the Greenback to help the pair float in the positive territory.

Gold price technical forecast

As expected, Gold price edged lower during the first half of the day to a low of $1487.65 before it took some bullish momentum and clinging a new 6-year high at $1519.37 per ounce.

The price is currently trading just above the $1510 level with the momentum getting away slowly from the overbought zone creating a larger divergence between the price and the momentum. We will be focusing on the upside before we turn our attention to a bigger correction. The level to watch is the $1520.64 resistance level.

Support: 1506.02 / 1482.82
Resistance: 1520.64 / 1539.61

Chart (4H)

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