Gold price is up today as investors are calculating economic damage by Coronavirus pandemic. Can Gold safe-haven rally push towards $1900 per ounce? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 16, 2020 | AtoZ Markets – Gold is currently trading around $1720 area and trying to climb higher. XAU has been quite non-volatile and impulsive with the current bullish trend, which able to broke above $1700 area. As per the current price action, Gold safe-haven rally may sustain further in the coming days.
U.S. industrial production fell at its lowest rate since 1946 with a drop of 5.4%, and manufacturing output down by 6.3%. Besides, the New York Empire State Manufacturing index fell to its lowest level at 78.2. Moreover, U.S. Unemployment claims report going to publish today, which will show how many people lose their job until today.
On the other hand, Gold futures down 1.5% at $1742.60 a troy ounce, a fell more than $20 in just one day. Besides, Spot Gold was down 0.5% at $1718.63. Moreover, Silver futures were also fell 2.9% at %15.66 an ounce, while Platinum futures were down 1.9%, at $804.45.
Gold Safe Haven Rally May Sustain as U.S. Economy Is Sinking
Gold is currently residing near $1720 are and trying to push higher. XAU broke above $1700 area quite impulsive and holding the price up there from the past three days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold safe-haven rally pushed the price higher towards $1745 area, and currently residing near $1720. The dynamic levels are carrying the price from an extended period, which may sustain further in the days ahead. As per the current price action context, if the price bounces higher from the dynamic levels impulsively, the bullish trend may sustain further towards $1800 area in the process.
Furthermore, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support as they did earlier. Besides, the MACD lines are residing above the 0.00 level, which may sustain further there in the coming days.
XAU Bulls May Reach at 2011’s High
According to the Daily chart, Gold is currently residing near $1720 area and maybe trying to retrace down to $1700. As per the current scenario, if the price breaks above the trend line resistance with an impulsive daily candle, the bullish trend may sustain further towards $1900. Alternatively, if the price rejected trend line resistance and broke below $1700, the bears may regain momentum and push the price lower towards $1650 in the coming days.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is residing far below from the price, which may pull the price as Mean Reversion. Besides, the RSI line is rising upward gradually, which may sustain further in the process.
To conclude, Gold again proved itself as a safe haven market amid the COVID-19 pandemic. Though overall bias is still bullish, a trend line rejection may help the bears to regain momentum again.