Gold Price News and Forecast: XAU/USD - Gold Restarts Uptrend Ahead of New 2020 Decade
|Gold trades at overbought waters near 1,500 and key resistance
Gold returned to the 1,500 territory after almost two months following the breach of the 1,490 barrier, which is the 23.6% Fibonacci of the 1,266-1,566 uptrend.
The market is currently looking overbought as the RSI is flattening slightly above its 70 mark, the Stochastics are ready to complete a bearish cross above 80, and the price itself is trading around the upper Bollinger band.
A downside correction could retest the 1,500 round-level, where any violation would shift attention back to the 1,490 mark. Another leg lower may next find some footing around 1,470 and the upper line of the broken descending channel. If not, the sell-off could accelerate towards the 38.2% Fibonacci of 1,445, a break of which could bring the area between the 200-day simple moving average (SMA) and the 50% Fibonacci of 1,411 under the spotlight. Read more...
Gold Restarts Uptrend Ahead of New 2020 Decade
The XAU/USD (Gold) has broken above the key resistance trend lines (dotted), which indicates a potential restart of the previous strong uptrend.
Gold’s strong bullish price action could complete the bearish wave 4 (blue) correction at the 38.2% Fibonacci retracement level and indicate the start of the wave 5 (blue). A break above the next resistance trend line (red) could confirm (green check) the bullish continuation towards the Fibonacci targets of wave 5 vs 1+3. Read more...
Gold retreats from two-month highs, continues to trade above $1510
The XAU/USD pair gained more than $30 last week supported by the broad-based USD weakness and closed at $1511. With the poor performance of major Asian equity indexes and heightened geopolitical tensions in the Middle East, the pair stretched higher at the start of the week and renewed its best level in more than two months at $1515.90 before going into a consolidation phase. As of writing, the pair was up only 0.08% on the day at $1511.75.
Reports revealing US airstrikes against the Iranian-backed Kataib Hezbollah militia in Syria and Iraq over the weekend caused geopolitical tensions to escalate on Monday. According to Iranian state news agency IRNA, "US military aggression against Iraqi soil and Iraqi forces is strongly condemned as a clear example of terrorism," Iranian Foreign Ministry spokesman Abbas Mousavi said. Read more...
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