The Gold price has confirmed once again that it could increase further in the weeks ahead after the minor consolidation. It is trading at $1,718 level and is still located within a chart pattern, but yesterday's candle has signaled a potential upside breakout and further growth. The price has rallied as the USD has depreciated versus its rivals in the short term.
The global risk caused by the COVID-19 crisis and the trade tensions between the US and China could push the gold price towards new highs soon. The US is to release the NFP, Unemployment Rate, and the Average Hourly Earnings today, Gold will explode if the figures come in worse than expected.
The yellow metal has developed a bullish engulfing and today it could validate this pattern and strong bullish momentum. Gold has made another false breakdown below the inside sliding line (SL) of the ascending pitchfork which represents strong dynamic support and now it could breakout from the minor triangle.
The price is trading above the $1,700 level, a valid breakout from this minor pattern will validate a further increase. The next upside targets are seen at the R1 ($1,767), upper median line (UML), $1,800 level, and higher at the R2 (1848).
- GOLD TRADING RECOMMENDATIONS
The gold price is into an uptrend, the current sideways movement could give us a great chance to buy it as well. A valid breakout from the minor triangle will bring a long opportunity, R1 ($1,767), the upper median line (UML), $1,800 level, and the R2 ($1,848) level could be used as near term potential targets. However, a valid breakout above the upper median line (UML) could validate a larger increase towards the $1,900 psychological level and towards the R3 ($1,949) level.
Gold is bullish as long as the price is traded above the 1,700 - 1,666 area, I believe that only a drop below the Pivot Point ($1,666) and below the median line (ML) will bring a short opportunity and will confirm a corrective phase.
The material has been provided by InstaForex Company - www.instaforex.com