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
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.
