The yellow metal is traded at $1,703 and it seems determined to resume the uptrend after the minor decrease and after it has tested and retested the near-term support levels. Gold is bullish, the current sideways movement could give us a great chance to buy it as well.
The specialists talk about a global recession even if the COVID-19 crisis will diminish, so Gold remains an attractive asset/instrument, its price could jump way higher on the medium to the long term. Gold has remained in the positive territory as the USD was into a corrective phase.
Gold price is traded within a minor triangle, it has registered another false breakdown with great separation below downside line and below the inside sliding line (SL – ascending dotted line) of the ascending pitchfork suggesting an upside valid breakout and a further increase.
The price has retested also the weekly Pivot Point (1,666) level, the bias is bullish as long as it stays above the sliding line (SL), the first upside target is seen at the R1 (1,767) level and at the upper median line (UML).
- GOLD TRADING RECOMMENDATIONS
Friday’s candle has signaled another bullish momentum in the short term, a valid breakout from this pattern will lead the price towards the R ($1,767) level and towards the upper median line (UML) of the ascending pitchfork.
Gold could approach the $1,800 psychological level as well if it stabilizes above the $1,700 level. A further increase will be invalidated only if the gold price decreases and stabilizes below the sliding line (SL) and below the 1,671 – 1,666 area, you could go short below this static downside obstacle.
The material has been provided by InstaForex Company – www.instaforex.com