Gold is trading in the green and is fighting hard to approach and reach new highs as the rate is located in the buyer's territory. It is traded at $1,776 level, the $1,800 psychological level is seen as the next upside target.
The yellow metal could jump way higher if the USD will continue to depreciate after the ISM Non-Manufacturing PMI, the indicator is expected to come back at 50.0 points, after two months contraction caused by the COVID-19 lockdown.
The gold price has tested and retested the inside sliding line (SL) of the ascending pitchfork and it is almost to invalidate the bearish divergence showed by the RSI indicator. Another higher high, a jump, and close above the $1,789 level will indicate a strong bullish momentum and a potential increase towards the R1 ($1,820) and towards the upper median line (UML).
The bias is bullish as long as the price is traded above the sliding line parallel line (SL). The last two rejections from the sliding line (SL) have signaled that the growth will continue and that the price should reach fresh new highs.
- GOLD Trading Tips
I believe that another higher high will validate a further increase, so we could have a buying opportunity if the price closes above the $1,798 level. Still, you should be careful because the $1,800 area could stop the bullish momentum.
A further increase could be invalidated by a valid breakdown below the sliding line (SL). Also, the $1,747 level is seen as strong and critical support. On the upside, the R1 ($1,820), R2 ($1,861), and the upper median line (UML) could be used as targets if the gold price continues to increase.
