3rd August 2020 | AtoZ Markets - Gold (XAU) is currently trading above 10 years high and reached $1968 as the time of writing. The price pushed higher inevitably after breaking above $1800 area recently which lead to impulsive bullish pressure taking the price towards $1900 and above.
The price may correct lower towards $1950 but certain upward pressure is still on the move. The Bullish pressure may lead the price towards $2000 in the coming days. As per investors, Gold is favored over Bitcoin to a certain extent for which the Yellow Metal is still gaining value without much deeper retracement along the way.
Gold to Break Above $2000 Supported by Ascending Triangle
XAU is currently being held by the Ascending Triangle support trend line which has proved to be effective enough to push the price higher. The price did manage to reach $1980 several times earlier but could not establish above this critical level. Moreover, recently we have observed a False Breakout Scenario in the process which does put some question for the upcoming scenario.
image: Gold 1 hour chart
The gold price has been quite non-volatile and impulsive with the recent momentum which leads the price towards $1980 area. Though there is certain Bearish pressure in the making until the price breaks below Trendline support. The trendline support is around $1960 and the bulls are expected to push higher towards $2000. On the contrary, if the price manages to break below $1960 with a daily close, then the Gold price may push lower towards $1900 again in the coming days.
Did Gold establish as Safe-Haven?
XAU has already established itself as a strong investment instrument recently by attracting more investors along the way towards $1980. Despite the recent bullish trend in place, a certain correction towards $1900 may be observed as the price may revert back to the mean before reaching a critical level like $2000.
image: Gold Daily Chart
As per current observation, the gold reaches a strong peak with a greater probability to revert back to the mean $1900 area. The bullish trend is still quite strong and may break above $2000 in the coming days. As per current strong bearish pressure, the price may revert back towards $1900 area in the process.
To Conclude, Gold has managed to attract a good number of investors in this Coronavirus Pandemic. Despite the certain correction in the making, Gold has a great possibility to reach and break above $2000 resistance area.