XAU is currently trading around $1605 area, and Gold price can continue higher above $1600. Despite the strong Bullish Bias, Gold may retrace lower. Let’s check Gold Technical Analysis for more levels and insights.
March 26, 2020 | AtoZ Markets – Gold is currently residing near $1605 area and retracing lower in a strong bullish trend. After bouncing from $1490 area, the Bulls pushed the price aggressively higher and reached $1640 in no time. Currently, the price may retrace lower before Gold continues the climb with a target towards $1700.
Gold price fell today during the Asian session, after the U.S. Senate announced a relief package to fight against Coronavirus pandemic. The Senate announced a total of $2 trillion package to purchase unlimited amounts of Treasury bonds and mortgage-backed securities. Moreover, the Asian equities market investors also had a mixed reaction to the reports with the continuous spread of Coronavirus. As per recent information from WHO, the number of global cases topped 400,000 as of March 25, 2020.
Will Gold Continue Higher Towards $1700?
XAU is currently trading around $1605 area and currently retracing lower. The price is currently quite volatile and corrective while Bulls are trying to sustain above $1600 area. As the overall trend is Bullish, the price may retrace lower before the Gold continues the Bullish trend.
Image: Gold 4 Hour Chart
According to the 4-hour chart, the Bears are currently quite weak while trying to push the price lower. Despite the down move, $1600 is currently working as support to hold the price higher. As per current price action, Gold may now retrace down at least towards the dynamic level of 20 EMA. So, if the price decline and finds support at the dynamic level, which is currently residing near $1585 area, Gold may continue higher in the process.
Furthermore, the MACD lines are residing above 0.00 level and intersecting as a Bearish cross over. Moreover, the histogram volumes are turning Bearish as the price is pushing lower. As per the current scenario, the price may continue to decline as a retracement before the Bulls continue with the upward trend.
Gold Bulls Active Above $1600
According to the Daily chart, XAU is currently trading around $1605 area after the price managed to break above $1600. The Bulls recover almost 80% of the recent drawdown and may recover further. As per the current scenario, the price requires a Bullish daily close above $1600 area before the Gold price continues higher towards $1700.
Image: Gold Daily Chart
On the other hand, the dynamic level of 20 EMA is residing below the current price and may become support for the upcoming Bullish momentum. Besides, the MACD lines have crossed each other upward while residing below the 0.00 level, indicating further Bullish pressure is in the making.
To conclude, Gold still has the potential to continue higher despite the current volatility. So, a daily Bullish close above $1600 is required to confirm further up move in the coming days. Alternatively, a Bearish daily close below $1600 may lead the price lower again.