Gold has finally managed to pass above the near-term resistance level signaling that the buyers are in control and they could push the price even higher. The US Unemployment Claims indicator was reported at 6606K in the previous week, above the 5000K estimate. The Fed has added new measures to fight COVID-19 effects, the gold price was boosted by this situation.
I've said in my latest analysis that Gold maintains a bullish perspective and that it should jump towards fresh new highs in the upcoming period. Gold Futures COMEX increased as much as $1754.5 in yesterday's session, while the spot gold reached the $1690 level again. The USD decrease sent the Gold price higher, so the US dollar further depreciation will lead the yellow metal towards new highs.
Spot Gold closed the session at $1682.43, way above the $1642.68 opening price. You should know that the market is closed today, but most likely Gold will resume the upside movement in the upcoming week.
Gold managed to extend its rally, jumping above the $1673 former high and above the inside sliding line (sl) of the ascending pitchfork. The next target is at the weekly R1 ($1702.57) and at the $1703.23 high.
If Gold stays above the broken sliding parallel line (sl), it is likely to approach and reach the upper median line (uml) of the ascending pitchfork soon. The outlook is bullish as long as the price is traded above this ascending dotted line, you could still search for long opportunities.
Yesterday's aggressive rally signaled a further increase, the next target is at R1 ($1702). So, only a valid breakout above the $1700 - $1703 area will confirm a larger upside movement. Personally, I believe that yesterday's breakout above the sliding line (sl) has favored a breakout above the $1703 former high.
We may have a great buying opportunity if the price makes another high and consolidates above the R1 ($1702) and above the $1700 psychological level. The next upside target will be represented by the upper median line (uml) of the ascending pitchfork and by the $1800 level. The Stop Loss should be placed right below the $1639 low.
A minor drop from the $1700 - $1703 area and a sliding line (sl) retest will give us a chance to go long as well. I believe that the outlook will be bullish as long as Gold is traded above the $1600 level.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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