XAU/USD Outlook: Gold extends advance to new highest level since 2009

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold posted new seven-year high on Friday, in extension of strong six-day advance from $1561 higher base.
Persisting fears about coronavirus spreading beyond China and negative impact on global economy, maintain strong safe-haven demand and keep gold price well-supported.
The yellow metal is on track for the biggest weekly rise since early Aug 2019, with weekly close above $1600 psychological level, to add to bullish stance.
With no significant obstacles until $1685/$1700 zone, the way remains open for further advance.
Daily techs are bullish but overbought, however, no firmer negative signals being generated yet.
Bulls may take a breather on week-end profit-taking, with dips to be ideally contained above $1600 level and seen as positioning for fresh upside action.

Res: 1636; 1639; 1642; 1650
Sup: 1631; 1618; 1611; 1603

Interested in XAU/USD technicals? Check out the key levels

1. R3 1647.5
2. R2 1635.64
3. R1 1627.65
PP 1615.79
1. S1 1607.8
2. S2 1595.94
3. S3 1587.95

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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