Gold has decreased a little in the short term, but the uptrend is still intact, so you could still look for buying opportunities. The yellow metal is traded at $1,775 level and it is expected to resume its upside movement after the minor retreat.
Yesterday’s mixed US data has lifter the gold price, a USD’s decline versus its rivals will push the yellow metal towards fresh new highs. The COVID-19 second wave fear and the global risk, global economy slow recovery, could attract more buyers in the weeks to come.
Gold has registered only a false breakdown below the median line (ml) and below the Pivot Point ($1,764) level, confirming once again a potential further growth. I’ve said yesterday that a further increase could be invalidated only by a valid breakdown below the mentioned near-term support levels.
So, the outlook is bullish in the short term as long as the price stays above the median line (ml) of the ascending pitchfork. The first upside target remains at the R1 ($1,785) level, only a valid breakout will announce a potential broader growth.
- GOLD Trading Tips
Buy if the gold price will make a valid breakout above the R1 ($1,785) and most important if it will make another higher high, to close above the $1,789 level. The $1,800 and the upper median line (uml) of the orange pitchfork could attract the price.
Sell only if the gold price will drop and close below the $1,757 yesterday’s low. A potential decline could be announced also by a valid breakdown below the median line (ml).
The material has been provided by InstaForex Company – www.instaforex.com