Home Forex Forex Market Analysis Gold’s Bullish Bias Remains Dominant – Is It Going After 1,633? 

Gold’s Bullish Bias Remains Dominant – Is It Going After 1,633? 

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On Thursday, the precious metal gold prices soared over 1% to trade around 1,608 in the wake of record-high U.S. jobless claims. The U.S. unemployment claims rose for a second week in a series over intensified concerns of economic damage because of coronavirus, which eventually drove traders towards the safe-haven metal.

The quantity of Americans registering jobless claims multiplied from the previous week to a record high of 6.65 million, as more areas of the U.S. enforced stay-at-home steps to curb the coronavirus. 

Global sentiment is getting worse time by time, despite the central banks’ and governments’ on-going struggles to fight against COVID-19. As a result, investors seem to move toward the gold as fears of a global recession stay in play, especially if noises start showing in the largest economy in the world. 

XAU/USD – Daily Technical Levels

Support       Resistance 

1,574.53      1,604.78

1,557.62     1,618.13

1,527.36     1,648.38

Pivot Point 1,587.87

On the technical front, gold is trading at 1,610, and it’s maintaining a broad trading range of 1,635 – 1,577. On the 4 hour chart, gold has closed a bullish engulfing candle, which is suggesting chances of buying trend in gold. The XAU/USD may find an immediate resistance at 1,622 and 1,634, while support stays around 1,600 and 1,595 level. The MACD and RSI are crossing over on the bullish side, and these are also supporting a buying trend in gold. Consider taking buying trades over 1,610 with a target of 1,622 and 1,627. Good luck! 

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