Gold Price Analysis: XAU/USD is in touching distance of the $1800 level and the 8.6 year high


  • Gold has broken higher and is very close to the $1800 level.
  • The next main resistance is the all-time high!.

Gold looks set to reach the 8.6 year high during the US session on Tuesday as fears about the coronavirus persist. The demand for physical gold has been increasing with central banks around the world stockpiling the precious metal. SPDR gold ETF holdings are over their 8-year peak increasing by 211.9 tonnes, or nearly 22%, in the second quarter

The last time gold was trading at this level was the back in 2011. The level was used as the consolidation high after the precious metal hit its peak in September of USD 1921.07 per troy ounce and then pulled back. 

Now the aforementioned peak of USD 1921.07 per troy once could bow be the next target for the bulls as the uncertain landscape continues and the worlds central banks keep the printers switched on. 

Gold monthly chart

The monthly chart below shows how close the price is to the all-time high. If the USD 1800 per ounce level does give way then the probability of a test becomes far larger. Beyond that, the sky is the limit.

Gold Monthly chart

Gold 4-hour chart

The 4-hour chart shows the confluence of zones all matching up nicely. The 138.2% Fib extension is matching up very closely to the USD 1800 per troy ounce level. There is also a trendline connecting the last two peaks that could become a resistance zone. Looking at the Relative Strength Index a bearish divergence is setting up but there have been many in this bull trend.

Gold 1800 level

Additional levels

XAU/USD

Overview
Today last price 1797.12
Today Daily Change 12.66
Today Daily Change % 0.71
Today daily open 1784.46
 
Trends
Daily SMA20 1751.8
Daily SMA50 1729.9
Daily SMA100 1680.18
Daily SMA200 1594.69
 
Levels
Previous Daily High 1787.11
Previous Daily Low 1770.16
Previous Weekly High 1789.28
Previous Weekly Low 1757.7
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1780.64
Daily Fibonacci 61.8% 1776.63
Daily Pivot Point S1 1774.04
Daily Pivot Point S2 1763.63
Daily Pivot Point S3 1757.09
Daily Pivot Point R1 1790.99
Daily Pivot Point R2  1797.53
Daily Pivot Point R3 1807.94

 

 

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