Gold price surged to fresh multi-year tops on Wednesday, with bulls now eyeing a move towards conquering the key $1500 psychological mark.
7 August 2019 | SQUARED DIRECT – The price of gold edged higher during yesterday’s session and continue to print new highs this morning as the price takes a respite from significant rallies on the back of trade war tensions and the tremendous uncertainty which has left investors sidelined and out of risk. Markets have stabilized on Tuesday, with the US benchmarks correcting at least some of the trade war rout.
The Chinese have said that there are committed to not allowing the Yuan to destabilize and Larry Kudlow announced that another round of trade talks would resume again in September. Then, supporting the Dollar, Fed’s Bullard said that he doesn’t see conditions that would warrant half a percentage point cut all at once.
Nevertheless, this has been yet another day of gains for gold in a series of bullish candles, so far, and was only interrupted for a day following last week’s solid US NFP report and analysts don’t see an end to the upside yet.
Gold price technical analysis
Gold prices took a breather during the first half of yesterday’s session towards the $1456.93 support level then got back up to the tops before printing new one early this morning as we enter the overbought zone.
The price of gold is currently trading just above the $1474.99 resistance level with a bullish momentum and seems more probable to continue with the upward move after that break above the upper band presented on the chart. The next level we will be watching will be the $1482.82 resistance level.
Support: 1456.93 / 1441.79
Resistance: 1474.99 / 1482.82
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