The yellow metal gold prices surged above $1735 and continued its two days upward rally and posted gains for 3rd consecutive day. The demand for the safe-haven asset increased at the end of the week due to increased uncertainty in the market after the comments of the chairman of the Federal Reserve & the President of the United States on Friday.
The Federal Reserve Chairman, Jerome Powell on Friday defended an aggressive action to shield the U.S. economy from the coronavirus pandemic crisis and said that the central bank was days away from launching its Main Street Lending Program.
Powell added that Americans must feel safe and confident while shopping, eating at restaurants, or visiting public places without risking of catching infection for quick economic recovery, and that can only be done after tracking the spread of the virus, which has become more important measure than economic data.
Taking a look at the technical side of the market, the XAU/USD is trading at 1,741 after having violated the 1,737 resistance level, which is now working as a support for gold. Above this level, gold still has odds of trading bullish until the next target level of 1,749/51. The leading indicator, such as MACD and 50 periods EMA are suggesting chances of bullish trend continued until the next target level of 1,752.
Entry Price – Buy 1743.01
Stop Loss – 1737.01
Take Profit – 1749.01
Risk to Reward – 1.00
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60