XAU/USD outlook: Gold shines on global recovery concerns and rises to new nearly 8 years high
|GOLD
Spot gold was a top performer in early Monday’s trading, advancing slightly over 1% since Asian opening and hitting new highest since Oct 2012, following break of previous high at $1747 (14 Apr).
The yellow metal holds in green for the fifth straight day, extending last week’s 2.4% advance and shining on fading hopes for a speedy global recovery as recent weak data discourage markets.
Speculations about negative interest rates in the US and cheap money around the world further prompt traders into safety.
Fresh rally looks for confirmation on close above $1747 for confirmation, with targets at $1795 (Oct 2012 high) and $1800 (psychological) coming in focus.
Steep ascend since Aug 2018 (part of larger uptrend from Dec 2015 low at $1046) doesn’t show any sign of fatigue, with fresh increase of demand and break of key technical barrier, adding to positive signals.
Bulls may adjust on the way towards $1800 zone, with dips expected to offer better opportunities for re-entering bullish market.
Former highs at $1747/38 reverted to supports which should ideally hold dips.
Res: 1768; 1780; 1795; 1800
Sup: 1754; 1747; 1738; 1731
Interested in XAU/USD technicals? Check out the key levels
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