- 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 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.
|Today last price||1797.12|
|Today Daily Change||12.66|
|Today Daily Change %||0.71|
|Today daily open||1784.46|
|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|
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.