Gold Sustains Above $1670 – Can Continue the Bullish Trend?

Gold price fell on Monday morning, but bulls are still optimistic. Gold sustains above $1670 area, can continue the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.

April 20, 2020 | AtoZ Markets – Gold is currently trading around $1680 area after the price bounced from $1670. The price also found support at the rising trend line on the intraday chart. Moreover, Gold price fell almost 2% in the last U.S. session, while President Donald Trump announced guidelines to re-open his country’s economy.

Besides, Gilead Sciences (NASDAQ: GILD) reported that the efficiency of its experimental drug Remdesivir in treating Coronavirus patients. Unlike, some investors are still optimistic about Gold continue to be a safe haven market amid this COVID-19 economic storm.

Gold Sustains Above Critical Support

XAU is currently trading around $1680 area and trying to climb higher. Gold bullish trend was impulsive and non-volatile last week, which push the price record higher towards $1750 area.

Gold Sustains Above $1670 - Can Continue the Bullish Trend?

Image: Gold 4 Hour Chart

According to the 4-hour chart, XAU is currently residing near $1680 area and become quite volatile. Moreover, the price bounced from $1670 area earlier this morning, which indicating bulls are still in the market. As per the current price action, if the price can have a 4-hour impulsive bullish close above $1670 area, the bulls may push the price higher towards $1700. Alternatively, if the price breaks below the uptrend line and have an impulsive bearish close below $1670, the bears may take deeper retracement towards $1640 area in the coming days.

Furthermore, the dynamic level of 20 EMA is residing above the current price, which may act as a strong resistance and push the price lower. In contrast, if the price breaks above the dynamic level, bulls may regain momentum again and recover higher.

Read More – Oil Hits Record Low at $16.50 – Will Continue Lower?

Can XAU Reach $1800 in the Days Ahead?

According to the Daily chart, Gold is currently residing near $1680 area and trying to push lower. Moreover, after rejecting from $1750 area, the bears take over the market and push the price down to $1670. As per the current scenario, if the bears can push the price down towards $1640 and have a daily bullish close above the level, the bulls may push the price higher towards $1800 in the process.

Gold Sustains Above $1670 - Can Continue the Bullish Trend?

Image: Gold Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing below the price, which may pull the price back to the Mean. Apart from this, if the price bounce from the dynamic level and have a daily close above it, the bullish trend may sustain further in the days ahead. Besides, the Stochastic Oscillator lines are residing below over-bought level 80, after having a bearish cross over, which indicates further bearish pressure. On the other hand, the RSI line just broke below the rising trend line, which is another good indication of further bearish momentum.

To conclude, Gold has been quite non-volatile with the preceding bullish trend. If Gold sustains above the dynamic level of 20 EMA while residing above $1650, the bulls may continue the bullish trend towards 2012’s high.

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