Overview- Gold has been considered a highly valuable commodity for millennia and it has been followed largely in the financial market around the world. Gold faces the upside momentum following the Friday pullback and still going high. According to the market Joe Biden’s win the gold could forces the uptrend abolished and the bullish outlook can be seen. We can see that the pair is maintaining its strong bullish side in the market, the pair is showing upside momentum and still trading between all the major and minor EMA lines. The way bulls are reacting it seems like they are approaching the$2000 level. The gold price broke out of the falling wedge pattern this week on the way to its fresh seven weeks high.
The Short term to intermediate term trend is up so in an uptrend market always buy on the dips and covert every correction or retracement as a buying opportunity. A positive shift in market sentiments on hopes of additional stimulus before the en d of the year could make the XAU/USD rise higher.
Technical analyst: From the technical perspective we can see that market is rising up and every swing is making successively higher highs and higher lows. The odds are in favor of bulls and we will keep our view bullish on the pair. The chart is showing the gold is breaking the neck line and start rising upward which gives conformation of the bullishness in the market. The downtrend trend line is also break out between 1930-1933. The major support $1951 followed by $1900 whereas and resistance level 1932 followed by $2000
Also, pair is rising up by taking the support of an uptrend line which is generating bullish signal. On 1 hourly chart pair is trading above all the major and minor EMA lines which is a recent development. The RSI indicator is showing its level above 50 level which is favoring the bulls. The MACD indicator is showing a bullish crossover of the zero line which is also favoring the bulls.
Trade idea: Based on chart and studies we would recommend to our traders and investors that go for buy at $1952-50 target is $1975 & $1995 sl is $1920 level.
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