Overview: Gold has been considered a highly valuable commodity for millennia and the gold price is widely followed in financial markets around the world. Most commonly quoted in US Dollars (XAU/USD), gold price tends to increase as stocks and bonds decline. The metal holds its value well, making it a reliable safe-haven. Gold closed the books of 2020 with a bit over 30%yearly gain while taking around to $1900. After a meteoric rise in gold prices through the first three quarters of 2020 gaining +24.3% from January 1.
The chart is giving a bullish outlook. Positive volatility has been created in the market. the bullish path is chosen by the XAU/USD. The daily chart shows the metal is breaking out of a five-month falling channel represented by trendlines connecting Aug. the bullish signals have been established in the market. The pair creates its own moving pathway towards the north side. We can say the traders should ready to go for buy in recent times. Gold teases the bullish breakout the move to near two months high. The gold will choose the bullish path again according to the daily chart.
Technical Analysis: we can say technically that the pair creates the bullish signals. the Relative Strength Index (RSI) has already breached resistance at 62.00 in favor of the bulls. The gold chart developing the bullish flag pattern. On the daily chart, we can see that the pattern moving in the bullish trend and the RSI also travels above the 50 lines and creates the bullish pathway. The MACD also trying to rise above the zero levels. The minor EMA lines are above of the SMA lines as they favoring bullish signals in the market. on the 4 hourly chart, the bullish marabuzo is forming which gives a strong view of bullishness in the market. we suggest our buyers to make their investment on the bullish sideway and book their strong profit.
The support level will be 1850.00 followed by 1800.00 and resistance will be 1950.00 followed by 2000.00
Trade Idea: Based on the chart and studies above we would suggest to our traders and investors that go for buy at the level 1919.23 target will be 1950, 1960, and stop loss will be 1890.00.
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