Gold price rose today during the Asian session as stocks took hit from the Oil price drop. Gold sustains above $1670 area as investors are looking for safe haven. What are the charts and technical indicators are saying? Read more to find further insights into today’s XAU/USD Technical Analysis.
April 22, 2020 | AtoZ Markets – Gold is currently trading around $1690 area and trying to recover higher. The price found support at $1670 area, which is tested several times over the week. As per the current scenario, XAU bulls may push the price higher but may face resistance at $1700 in the process.
The Asian stocks reported drawdown for the second day because of Oil price historical drop. As a result, Gold Futures were up by 1.11% at $1706 area. Gold seeing its value restore its opposite relationship with the stock market as investors are seeking safe haven amid this Coronavirus pandemic. Moreover, the Bank of America raised its Gold price to $3000 an ounce, up from the previous $2000 target, according to the latest report, “The Fed can’t print Gold”. Moreover, Bank of America analysts said in the report, “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure.”
Gold Sustains Above $1650 as Other Markets Are Tumbling
XAU is currently residing near $1690 area and trying to climb higher. The price found support at the dynamic level of 20 EMA yesterday, and close above $1670 area.
Image: Gold 4 Hour Chart
According to the 4-hour chart, Gold is currently residing near $1690 area and trying to break above $1700. XAU is currently residing inside the ranges of $1700 to $1670 area, which needs to break to find the definite momentum. As per the current price action, if the price breaks above $1700 with an impulsive bullish close, the bulls may push the price higher towards $1750 in the process. Alternatively, if the price breaks below $1670 area, the bears may regain momentum and push down towards $1640.
Moreover, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support, if the price breaks above $1700 area. In contrast, if the price breaks below $1670 area impulsively, the dynamic level may work as a strong resistance. Besides, the MACD lines are residing below 0.00 level and may have a bullish cross over in the process.
Gold Bulls Are Still Active in the Market
According to the Daily chart, Gold sustain above $1670 area after the price had a daily bearish candle close yesterday. As per the current price action context, if the price can have a daily bullish close above $1700 area, the bulls may continue higher towards $1800 in the coming days.
Image: Gold Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, after the price bounced from it. The dynamic level may now act as a strong support and push the price higher. Besides, the Stochastic Oscillator lines are residing above the overbought level 20, and may have a bullish intersection in the process.
To conclude, Gold has gained almost 100 per cent of the recent drawdown amid this COVID-19 pandemic. The price still has the potential to climb further higher, but need a daily close to find the definite momentum.