Gold price fell during the Asian session as stock markets gained momentum. The price of Gold reached $1645 overnight after investors reacted to the U.S. extended restrictions for Coronavirus till April 30. Gold shows hope for Bulls residing above $1600? What are the charts and technical indicators saying? Read more to find further insights into today’s Gold Technical Analysis.
March 31, 2020 | AtoZ Markets – Gold is currently trading at $1615 area while trying to bounce from the rising wedge in the intraday chart. The price has been quite volatile and corrective but managed to remain above $1600 area. Moreover, as the COVID-19 pandemic is getting worse day by day, investors are in fear of economic recession. As a result, Gold is struggling to regain the Bullish momentum as a safe-haven markets again. Will rising wedge help the Bulls to take the price higher in the process?
Gold Shows Hope for Bulls in the Intraday Price Action?
The price of XAU is currently residing near $1615 area while struggling to push higher. Gold turned volatile after the price broke above $1600 area last week. However, investors still have hope that Gold may continue the Bullish trend in place with target towards $1700 in the coming days.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the price is currently trading at $1615 area while XAU is trying to find support as Gold shows hope. Currently, the price is quite corrective and indecisive but still have the potential to move upward. As per the current price action, if Gold bounce from the rising wedge and have a 4-hour impulsive Bullish close, the Bulls may take the price higher towards $1700 area in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price while holding the price as support. Gold may continue higher if the price manages to close above it.
Gold May Find Support at the Kumo Cloud
According to the Daily chart, Gold has been trading above $1600 area for an extended period while Gold shows hope for Bulls. After the price bounced from $1450 area, Gold pushed higher above $1600 area but failed to break above $1650 last week. As per the current price action context, the price is held by the Kumo Cloud, which may act as a strong support for the Bulls. So, if the price bounce from the Kumo Cloud and have an impulsive Bullish daily close above it, the Bullish trend may continue higher in the coming days.
Image: Gold Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun and Tenkan line. The dynamic level may work as a support in future, and the Kijun and Tenkan line may work as a confluence to the upcoming Bullish pressure. Besides, the MACD lines are residing near the 0.00 level may cross 0.00 higher if the Bulls manage to maintain the momentum further.
To conclude, Gold has been corrective and volatile but still have the potential to move upward. A strong Bullish close above $1650 is required to continue the Bullish trend.