Gold rising higher after the US China Historic Trade Deal as official signing of Trade Pact 1 is done. Gold may head higher towards $1600 area. Lets check GOLD Technical Analysis for more levels and insights.
January 16, 2020 | AtoZMarkets.com – Gold managed to gain certain momentum as U.S. kept the tariff unchanged for China. The price may push higher towards $1600 area but certain correction may be observed along the way.
Spot Gold rose around 0.6% while residing above $1554 price area. The price is currently residing at $1553 with certain bearish pressure. According to metal analyst George Gero, “Trade War is not over yet, the stable tariff deal between U.S. and China is an incentive to safe-haven crowd to seek a hedge in Gold”. Despite the recent Historic Trade Deal between U.S. and China, tensions still remain as U.S. decided to keep duties on $360 Billions of Chinese goods.
Global Equities manage to gain some momentum but it was not as expected. Moreover, the Gold weakened further as the U.S.-Iran tension faded.
GOLD Technical Analysis – January 16, 2020
Gold rising higher after the U.S. China Historic Deal and may continue the bullish rally towards $1600. The price is currently quite corrective while residing at the edge of $1555 and Kumo Cloud dynamic resistance. After the bounce off the $1535 area, the price is still in strong bullish bias and may reach $1600 in the coming days. Recently, Bullish Continous Divergence worked as confluence while the price bounced off the $1535 and helped buyers push the price higher with confidence. Currently, the Tenkan and Kijun line as well as 20 EMA is residing below the price line. The dynamic levels may work as support and provide confluence for upcoming bullish momentum.
image: Gold 4 Hour Chart
The price lost its impulsive bearish pressure at $1535, which lead to certain bullish momentum in the process. As $1500 is a psychological support level and $1535 has worked as an Event Level quite well. Despite current correction, the price still have greater probability to push higher towards $1600 in the coming days.
Gold rise higher after US China Historic Trade Deal
image: Gold Daily Chart
According to Daily Chart, the price is currently retracing lower to push higher towards $1600 area. Recent Bullish Daily Candle was quite strong one and having dynamic levels like 20 EMA and Kijun line as support, the price has good confluence to push higher. The recent Bearish Rejection off $1535 area helped to form an indication for upcoming rise after the recent bullish momentum.
Though MACD lines are at the edge crossing each other but the cross over has not completed yet. Additionally, MACD having no Bearish Divergence in play, does signal no bullish intervention is in the making. The Kijun line having flat status is signalling $1535 as strong support area. As the price remains above $1535 with a daily close, the bullish bias is expected to continue.
To Conclude, GOLD has formed a strong bullish structure above $1500 area whereas $1535 may act as strong support along the way. Despite certain bearish pressure today, GOLD is may still reach $1600 price area in the coming days.