Gold had another green week with gains of over $12 now comfortably placed above the $1300 level. The week’s bar was again a $20-$22 one which extended on the upside having touched the $1320 mark. A dovish Fed was the main reason behind the upmove which also will remain the biggest catalyst for the price moving forward given there will be no rate hikes in the current year. Key levels got crossed again suggesting more bullishness ahead as growth fears are gripping the global economies hard and fast.
On the chart –
Gold had a third consecutive green week with closing happening above previous week’s highs. As the fundamental data around the world unravels, its getting clearer that recession and growth fears might come true which inturn will push up the demand for the yellow metal thus new highs cannot be ruled out. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move towards $1318. Once this is crossed it can rally to $1327. If this is taken out it can move till $1341.
2. Short trades are still not valid given the price movement which is extremely bullish . They come into picture once the support gets broken for the targets of $1284 and $1273.
Bullish view – Bull had another great outing where new highs were reached and the support of $1296-$1300 was perfectly defended. The fall in dollar helped the price catapult towards $1318s. Fundamentals continue to encourage higher gold price as fears regarding growth have spiked and important events are lined up which should have a big hand in moving the prices. For bulls to head higher they need to defend the supports.
Bearish view continue to fade given the strength of the current trend.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1318 for the targets of $1327 and $1341 with a stop loss placed below $1308. Longer term target $1356.
Dips towards support can be used to create longs for the above mentioned targets.
Short trades come into the picture once the support gets broken for targets of $1284 and $1273.
Reference: Trading View
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