XAU/USD Outlook: Gold trades above $1400 level for the first time in six years
|Spot gold is holding above $1400 mark on Monday, trading at the levels last visited in nearly six years.
Rising tensions between the US and Iran increased safe-haven demand, with gold price being also strongly supported by signals of Fed rate cut. The yellow metal advanced 7.7% from the beginning of month and is on track for the biggest monthly gain since June 2016.
Strong bullish signal was generated on last week's break above pivotal Fibo barrier at $1380 (38.2% of 2011/2015 $1920/$1046 fall) that opens way towards Fibo 200% projection at $1427 and $1433 (Aug 2013 high) and would expose Fibo barrier at $1483 (50% of $1920/$1046) on further bullish acceleration, if the situation escalates. Daily/weekly techs are in full bullish setup but strongly overbought that suggest corrective action in coming sessions, though without firmer signal for now.
Bulls are expected to position before resuming, with initial support at $1400 and extended dips to hold above broken Fibo barrier at $1380, to keep bulls intact.
Res: 1411; 1427; 1433; 1450
Sup: 1400; 1396; 1380; 1375
Interested in Gold technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.