Gold Stable Bullish Momentum may lead price towards $1600 area as it remains above $1550. Certain correction may occur but Bullish trend may strengthen. Let’s check Gold Technical Analysis for more levels and insights.
February 10, 2020 | AtoZMarkets.com – Gold has been quite stable with the recent Bullish momentum residing above $1560 area. The price managed to sustain the Bullish trend quite well which may head towards $1600 area in the coming days.
As Oil struggles with the Coronavirus so as the Equity markets. Investors are currently diverting the funds from Equity market to Gold and Bitcoin market which lead the price of both safe-havens surge higher. Apart from Bitcoin, Gold has been stable and sustainable with the Bullish gains which can lead the price higher towards $1600 per ounce.
As per analysts, Gold is still a good hedege for Political, Economic and Stock Market headlines but can result in Quick Reversals. Though Gold price is stable with the recent gains but Bears can jump in anytime to push the price lower as Coronavirus issue fades.
Gold to correct before Continuing the Bullish Trend
Gold after breaking above $1560 is currently correcting at the edge of $1570 while being held by the dynamic levels along the way. The price did manage to create higher lows and higher highs along the way. As the Bullish pressure sustains, further upward move may occur.
image: Gold 1 hour chart
According to 1 hour chart, Gold is currently residing above the dynamic levels with confluence. The price recently broke above Slow EMA with 200 period and currently held as support by Fast EMA with 20 period. The Bullish pressure is still quite stable but as per current volatility certain downward move may occur.
MACD histogram has been squeezing lower from the upside as the price progressed higher. This indicates, the price can move lower before continuing the upward pressure. As the Bullish Bias is quite strong, certain Bearish momentum can lead to retracement rather than complete reversal. So, as per current price action, the price may head lower but remaining above $1560 will empower Bulls to fight back.
Gold Stable Bullish Momentum may retrace
image: Gold Daily chart
According to daily chart, the price is currently rejecting Bullish pressure after the week open today. As 20 EMA is currently intersecting the price, certain Bearish pressure may occur before it finally continues the Bullish run. As Gold remain above $1560 area with a daily close, further upward pressure may occur in the coming days.
To conclude, Gold may retrace and retest $1560 area before continuing the Bullish run. Gold remaining stable with the Bullish momentum can lead the price higher towards $1600 in the future.