Gold price rose yesterday and managed to break above $1600 area with a daily close. Despite the recent Bullish run, Gold is struggling to continue higher towards $1700 price area. Can Gold remain stable above $1600 price area in the process? What are the charts and technical indicators saying? Read more to find further insights into today’s Gold Technical Analysis.
April 3, 2020 | AtoZ Markets – Gold is currently trading around $1610 area with certain Bearish pressure pushing the price lower. XAU has become quite impulsive and non-volatile and successfully broke above $1600 area with a daily close. As per the current price action, the price may retrace down before continuing higher in the days ahead.
On the other hand, Gold price fell during the Asian session, despite the unfavourable U.S. Unemployment report yet to be published today. The U.S. announced that a record of 6.648 million people filed for unemployment last month, which may double this month. Moreover, the Coronavirus is continuously harming the U.S. economy as well as the global economy. The number of COVID-19 infected increased by 1 million on April 3 around the globe.
Gold Remain Stable Ahead of Non-Farm Employment Report
Gold bounced from $1570 area, and the bulls push the price higher towards $1620. XAU is currently residing around $1610 area after rejecting $1620 while the correction continues above $1600.
Image: Gold 4 Hour Chart,
According to the 4-hour chart, Gold is currently residing near $1610 area while trying to decline. The price broke above the dynamic levels quite impulsively. As per current price action, the price may retrace down towards $1600 area before bulls continue higher. So, if the price retraces down towards $1600 area and bounces higher, the bullish pressure may sustain further towards $1650 in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic levels may now work as strong support to push the price higher. Moreover, the RSI line is rising upward by following the uptrend line, which may add to the upcoming Bullish confluence.
Can XAU Recover Higher?
According to the Daily chart, Gold has become quite impulsive after retracing towards Fibo level 50. As per the current price action context, bulls successfully broke above the Fibo level 61.8 with a daily close. So, if the price sustains above $1600 area, the bulls may recover higher towards $1700 in the days ahead. Alternatively, if the price fails to sustain higher and push down below $1600 with a daily close, the bears may regain momentum.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is residing below the current price which is holding the price as support. Besides, the MACD lines are residing near the 0.00 level and trying to climb higher, which indicates further bullish pressure may occur in the coming days.
To conclude, Gold price is still volatile and corrective but Gold remained stable above $1600 area. As long as the price remains above $1600 area, bulls may continue to push the price higher towards $1700.