Gold Price Analysis: A daily close above $1772 critical for a test of $1800 – Confluence detector
Gold consolidates in a familiar range around $1770, despite a lift in the risk sentiment, underpinned by upbeat Chinese data. Will it break to fresh multi-year highs stepping into the third quarter of 2020?
The Technical Confluences Indicator suggests that the upside appears more compelling for the precious metal, in absence of healthy resistance levels stacked up en route the key $1800 level.
The bulls battle the immediate hurdle at $1772, which is the confluence of Bollinger Band one-hour Middle, Fibonacci 23.6% one-week and 10-SMA on 4-hour chart.
Gold eyes biggest quarterly price gain since 2016
Gold looks set to end the second quarter with double-digit price gains. The yellow metal is currently trading at $1,770 per ounce, representing a 12.4% rally on a quarter-to-date basis. That is the biggest quarterly gain since the first three months of 2016 when prices rose by 16.11%.
Gold, a precious metal with limited supply, seems to have benefitted from the massive liquidity infused by the US Federal Reserve and other major central banks over the past three months.
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