Gold Surpasses the $1,500 Psychological Barrier
|This time, the Santa Claus Rally is benefiting the precious metals, and gold now exceeds $1,500 since October
Gold gains $8.60 or 0.58% on Thursday reaching $1,508.04 per ounce, while Silver advances 22 cents or 1.28% soaring $17.97, Palladium scale $11.33 or 0.58% reaching $1,896.35.
Investor's confidence is taking up the interest of traders in precious metals after officials of the Chinese government declared on Thursday they agreed to sign the "phase one" of the trade agreement with the United States government.
Moreover, the spokesman of the Chinese commerce ministry, Gao Feng, indicated that both parties are speaking about the procedure of signature of the agreement.
Technical Overview
The price of gold in its daily chart shows the bullish breakout of a descending wedge that drives to the precious metal to surpass the $1,500 per ounce. Currently, the yellow metal is traded at $1,508 per ounce.
Long term, the trend of the yellow metal remains bullish as long as the price continues being traded above $1,341.42 an ounce.
Mid-term, in its 8-hour chart, gold reveals the bullish breakout developed in the last sessions.
Gold could find resistance in the zone of $1,519.04, which corresponds to the highest level reached by the precious metal on October 3rd. A retracement could drive to the price action to find support at the $1,486.85 per ounce.
The bullish movement that develops the precious metal could correspond to a new segment of a long-term triangular structure.
According to Elliott Wave Theory, a triangle formation has an internal structure subdivided into five segments following a 3-3-3-3-3 sequence.
Short term, the yellow metal could find resistance in the area between $1,510 until $1,519.60, corresponding to the October 3rd high. The next resistance zone where the price of precious metal might find sellers is in the area of $1526.91 and $1,535.63 per ounce.
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