Can Gold Strike the $1,500 again?

EagleFX Team EagleFX

This week the stock indexes have registered the biggest drop since mid-2019. In this article, we will see our arguments for a bias change from bearish to bullish in gold.

Fundamental traders are alert to the uncertainty generated by the Trump administration over the commercial decisions, which have led to increased market volatility.
In this scenario, precious metals that work as a risk-off asset are being driven to reach new weekly highs.
A pullback to the area of $ 1471 per ounce could provide an opportunity to join the potential new uptrend. Under this situation, the price action in our conservative scenario could lead gold up to $ 1484.1.
If gold extends its bullish momentum, the next target is at $ 1,497.5 and, finally, $ 1509.1 per ounce.
Our bullish scenario will be invalid if the price falls and closes below $ 1461 per ounce.
The risk of this bullish scenario for precious metals, since they act as risk hedging instruments, would arise from a full phase one agreement between China and the United States.

Trading Plan Summary

Entry Level: $ 1,471.
Protective Stop: $ 1,461.
1st Profit Target: $ 1,484.1.
2nd Profit Target: $ 1,497.5.
3rd Profit Target: $ 1,509.1.

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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