Gold rallied today and has increased as much as $1,737 level, for now, the outlook is bullish. So, the price could jump way higher in the next days. The yellow metal's price is located in the buyer's territory, the failure to stabilize below the $1,700 psychological level has signaled a further increase. The price continues to stay higher, even if the USD has appreciated a little in the short term.
Gold is bullish as the global risk remains high, a second COVID-19 wave, and the global economy late recovery could force the gold price to reach fresh new highs in the weeks to come.
Gold has escaped from the minor orange descending pitchfork signaling that the correction is finished and that the price could give birth to another upside momentum. The resistance stands at the inside sliding line (SL) of the major ascending pitchfork.
Furthermore, the bias will be bullish as long as the price will be traded above the median line (ML) of the ascending pitchfork and above the $1,700 level, only a valid breakdown below these obstacles will suggest selling and a reversal, corrective phase.
- GOLD TRADING RECOMMENDATIONS
Another higher high, a jump, and close above the $1,744.74 will confirm a further increase towards the $1,765 high, the R1 ($1,773) could be used as upside target as well. Technically, the gold price could approach the upper median line (UML) of the ascending pitchfork in time, as long as it stays above the median line (ML). The $1,800 psychological level is seen as an important target as well if the uptrend resumes.
A valid breakdown below the median line (ML) and below the $1,700 will suggest selling with a first target at the $1,666 static support. Only a valid breakdown below the $1,666 level will trigger a broader decline, corrective phase on Gold. If this scenario will take shape, the $1,600, $1,555, and the $1,484 levels are seen as major targets.
