Gold price rejected support at $1585 and may continue the Bullish momentum. The price corrected lower after meeting resistance at the $1690 key area. Let’s check technical analysis for more levels and insights.
March 3, 2020 | AtoZ Markets – The price of Gold was successfully able to close above $1585 area after Gold rejected support at $1560. Gold price is currently trading near the $1600 area and may continue upward. If buyers are able to maintain the bullish momentum, the price may continue higher in the coming days.
Gold Price Fundamental Forecast
Gold is trading higher today after the Asian market opened with the reports of potential policy easing by the major Central Banks. Banks like, U.S. Fed, Reserve Bank of Australia, Bank of England, European Central Bank, and Bank of Japan gave a hint of action in the coming days. It is highly probable that the U.S. Fed will cut the interest rates by 50 basis points at its next meeting on March 18.
On the other hand, Commodity Analyst at Investing.com Barani Krishnan said, “The advance could be limited, and further losses are likely after risk trades, including those in oil and stock, came roaring back on Monday on action promised by the Global Central Banks in fighting the Coronavirus.” Gold may prove to be a safe-haven market again if it is able to hold its Bullish momentum.
Gold Rejected Support may Continue Higher Towards $1690 Again
The price of Gold is currently changing hands near the $1600 area after the bulls rejected support at $1585. The yellow metal is still now quite corrective and volatile after a bounce from the recent support area. However, the overall trend is Bullish. As Gold’s corrective phase finishes, Gold Bullish momentum may sustain further.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the XAUUSD price is currently residing near $1600 area after it rejected support at $1585. The bulls are able to close above $1585 with an engulfing 4-hour bar. The Gold is now becoming quite corrective as buyers are trying to push the price higher. The dynamic level of 20 EMA is residing above the current price, along with the Kijun line. But the Tenkan line is residing below the current price, which may work as support and move the price higher. If the bulls are able to have a close above the dynamic levels, the Bullish trend may continue further higher with the target of $1690 key resistance again.
Moreover, the MACD histogram volumes are residing below 0.00 line but continuously moving higher. The MACD lines are also moving higher, which may cross each other towards upside in the coming events.
Gold Retraced Down Towards $1585
According to the Daily chart, Gold is now trading at $1600 area. After Gold rejected support at $1585 area, Bulls are able to hold the Bullish bias. If Bulls have a daily close above $1610 area, the Bullish momentum may further continue higher with the target of $1700 key resistance.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing near the current price, and the Kijun line and the Tenkan line are residing above the current price. If Bulls are able to break the dynamic level upward, the price may continue to rise in the coming days. On the other hand, the MACD lines are residing above 0.00 line and maintained there.
To conclude, if Gold has a daily close above $1610, the Bullish trend may continue with the target of $1700 in the coming days.