Gold Price Analysis: Gold breaks the previous wave high and looks to target USD 1795.25

  • Gold bugs are clearly having a good Easter week as the precious metal breaks the previous wave high.
  • The next distribution area looks like it could be a tough nut to crack. 

Fundamental backdrop

There has been a shift in gold over the last few weeks which had led to the precious metal pushing higher. It seems ever since the weekly jobless claims data came, one of the main themes of the COVID-19 trade is that the safe haven reality kicked in. Putting this into context, stocks have still been on the rise but its the US dollar that has pulled back. Previously the USD became the safe-haven asset of choice as a scramble of cash ensued. Now that moment has passed the reality is settling in and gold is soaring.

This week will be once again dominated by the coronavirus pandemic. Despite that, there are some great data points to keep an eye on. The UK get their latest employment data for February, although this is not the best reflection of the extent of the issues the UK economy is facing due to aforementioned crisis but it will give us some clues. That is not it from the UK as the latest retail sales print for March will be a great indicator of the economic health in this difficult time. 

From Germany, we get the latest manufacturing number for April. Last time out the reading came in at 45.4, still in contractionary territory and the April forecasts are even worse (39.6). The German IFO reading will also be interesting as the research institute will give us a breakdown of the latest stats in their report. 

Gold weekly chart

Looking closer at the weekly chart, the price has broken the last wave high at USD 1703.27. This is a great sign as there is now another higher high higher low printed. The next major wave high is the blue horizontal line around USD 1800.00. Beyond that, the next major high is the red line at USD 1912.14 and that one is the all-time high. If you look closely at the technical indicators the RSI is showing a bearish signal called divergence and this indicates the upside momentum might be slowing down. If you are long I don't think its a strong enough reason to close out your positions but its just something to be aware of. On the lower timeframes, there could always be a short term pullback and that may be an opportunity to jump in the trend. 

Gold breaks previous wave

Additional levels


Today last price 1709.54
Today Daily Change 25.20
Today Daily Change % 1.50
Today daily open 1684.34
Daily SMA20 1587.32
Daily SMA50 1599.54
Daily SMA100 1556.37
Daily SMA200 1519.05
Previous Daily High 1690.42
Previous Daily Low 1643.82
Previous Weekly High 1690.42
Previous Weekly Low 1609.15
Previous Monthly High 1703.27
Previous Monthly Low 1451.3
Daily Fibonacci 38.2% 1672.62
Daily Fibonacci 61.8% 1661.62
Daily Pivot Point S1 1655.3
Daily Pivot Point S2 1626.26
Daily Pivot Point S3 1608.7
Daily Pivot Point R1 1701.9
Daily Pivot Point R2 1719.46
Daily Pivot Point R3 1748.5



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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD rises toward after US retail sales miss estimates

EUR/USD is holding onto its gains above 1.21 after the US reported no change in April's retail sales, below 1% expected. The Control Group plunged by 1.5%. The dollar is falling across the pond. US Consumer Sentiment missed with 82.8, yet inflation expectations surged to 4.6%.


GBP/USD trades below 1.41 after US consumption data

GBP/USD is trading above 1.4050, benefitting from the better market mood. Sterling is shrugging off worries about the spread of new virus variants, which may delay the reopening. US retail sales missed estimates, causing jitters. 


EUR/USD Weekly Forecast: Fed may fuel the next leg of rally, bulls eye 1.2240

EUR/USD has been extending its gains amid dovish Fed policy and the eurozone's vaccination drive.   Eurozone PMIs and Fed meeting minutes are set to move the currency pair. Mid-May's daily chart is pointing to further gains.The FX Poll is showing mild downside pressure. 

Read full analysis

Dogecoin bulls hold the key for 40% gains

Dogecoin price is at a pivotal point, resulting in a 40% upswing or 30% sell-off. A swift surge beyond $0.522 and a retest of this level confirms a bullish outlook. If DOGE slices through the $0.351, it will put an end to the optimistic narrative.

Read more

AMC Entertainment Holdings surges on triangle breakout, targets $14.54 and $20

AMC has done it again and in the process is stealing the GameStop crown. Supposedly a movie about the whole GameStop saga is in the works, but if AMC has its way it will be stealing the show. Coming to an AMC theatre near you: "AMC to the moon". AMC closed Thursday at $12.77 for a nice gain of 23.7%, thank you very much.

Read more