XAU/USD rose to the highest levels since 2012. The advance has become stretched and the price may try to correct down.
XAU/USD: an attempt to recover
BUY 1,468; TP1 1,472; TP2 1,476; SL 1,466.50
After forming a “hammer” candlestick on the D1 on Tuesday, XAU/USD rose to $1,467 and consolidated between this level and $1,461. The price has managed to break above the short-term downtrend line, MAs on the H1 support it. If gold rises above $1,467, it will bottom and have scope to strengthen to $1,472.35 (38.2% Fibo of November decline) and $1,476.40 (50-period MA on H4). We don’t count on further advance for now, as XAU/USD will run into the resistance of the 100-day MA at the mentioned levels. On the downside, a fall below $1,459 is needed to open the way to $1,446.
After forming a diamond-like top below 1,700, XAU/USD went consolidating. Pay attention to the support and resistance levels!
Currently, the precious metal trades in the zone of 7-year highs. How far away is the all-time high?
Risk-on pushed stocks and riskier currencies upward.
It’s simply the question of time before gold price gets to the higher levels…
Coronavirus and massive oil oversupply was a once-in-a-generation coincidence. Is the worst over?