Gold relatively had a small actual movement compared to the week’s range which saw the metal create a fresh 52-week high amidst growing uncertainties, increased geopolitical tensions and the dominant coronavirus pandemic. With the world fighting its way out from the lockdown, last week’s news flow regarding China’s policies further worsened the already mistuned ties with the U.S igniting fears of a probable cold war between the 2 super powers. The only positive news around the globe is the race for creation of the vaccine but again there might be no such absolute cure/prevention since most viruses do not have a vaccine. Amidst all these, natural disasters too haven’t spared the world with countries facing different types of them adding to the overgrown list of problems. This certainly cooks up a perfect recipe for relentless mayhem which if not anything points towards the end of the days though this is a bit far thought of scenario. Gold remains the best asset class amongst all as it is technically and fundamentally more stronger the ever. To watch this week – Important economic data.
On the chart –
Gold after hitting new 52 week high went into consolidation where it successfully retested the breakout and finally ended fairly higher above the support area though with negative returns for the week. This retest further adds to the bull case making the yellow metal technically even stronger while preparing it for an unopposed run on the upside. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1740. If this is crossed it can move towards $1755. And if this is taken out it can rally to $1771.
2. Short trades still doesn’t entice as trend remains bullish except scalp trades.
Bullish view – Bulls relaxed a bit after attaining a new 52 week high as the price retraced from the highs and tested the breakout in which they were successful as the closing went in their favor. With the pandemic still hurting the economies severely, fresh geopolitical uncertainties and tensions have added another dark cloud over the world having dire consequences which should cement an extended run for gold above $1800. Technically, the retest has already provided the direction for the metal while fundamentals again keep getting firmer only as disruptions across the globe does not look to stop.
Bearish bets still remain non-productive.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1741 for the targets of $1755 and $1771 with a stop loss placed below $1733. Longer term target $1789.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold after hitting new 52 week high went into consolidation where it successfully retested the breakout and finally ended fairly higher above the support area though with negative returns for the week. This retest further adds to the bull case making the yellow metal technically even stronger while preparing it for an unopposed run on the upside. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1740. If this is crossed it can move towards $1755. And if this is taken out it can rally to $1771.
2. Short trades still doesn’t entice as trend remains bullish except scalp trades.
Bullish view – Bulls relaxed a bit after attaining a new 52 week high as the price retraced from the highs and tested the breakout in which they were successful as the closing went in their favor. With the pandemic still hurting the economies severely, fresh geopolitical uncertainties and tensions have added another dark cloud over the world having dire consequences which should cement an extended run for gold above $1800. Technically, the retest has already provided the direction for the metal while fundamentals again keep getting firmer only as disruptions across the globe does not look to stop.
Bearish bets still remain non-productive.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1741 for the targets of $1755 and $1771 with a stop loss placed below $1733. Longer term target $1789.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.