Home Forex Forex Market Analysis Bullish Bias in Gold Fades – Is It Going to Retrace Back? 

Bullish Bias in Gold Fades – Is It Going to Retrace Back? 

82
0

On Friday, the yellow metal gold as showing sideways trading around 1,683 level after mounting to the highest level since March 9. Yesterday, most of the bullish bias was seen in the wake of another stimulus plan announced by the Federal Reserve. 

The U.S. President Donald Trump is showing willingness to support the USA fight against the coronavirus (COVID-19), which eventually seems to help the risk-tone. This time, the Fed will elevate about $2.3 trillion to promote small and medium-sized companies, districts and workers harmed by the coronavirus break.

Increased volatility driven by COVID 19 has driven gold prices higher towards the forecasted resistance level of 1,689 and has closed a candle below this level. 

The consumer price index declined 0.4% from the previous month and grew 1.5% year, which is extremely lower than 2.3% gain in February. The pair got major as energy prices sank by the most in five years, exhibiting one of the stronger-ever breakdowns in oil prices.

XAU/USD – Daily Technical Levels

Support Resistance 

1656.59 1700.91

1629.83 1718.47

1585.51 1762.79

Pivot Point 1674.15

On the four timeframes, precious metal gold has formed three white soldiers, which suggest odds of further buying in the pair. Continuation of the upward trend may lead to gold prices towards the next resistance level of 1,702. At the moment, there are odds that gold prices may show correction until 1,676 and 1,669 marks ahead for extending further buying trends today. Good luck! 

LEAVE A REPLY

Please enter your comment!
Please enter your name here