Gold Price Forecast: Is Gold Setting Up For The Next Leg Higher?
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Gold Price Analysis, Price and Chart
- Monday’s bull-candle improves positive gold sentiment.
- Little resistance on the way to March’s high trade.
Gold Looking to Consolidate Before Making its Next Move
After rallying around $60/oz. on Monday, gold gave back some of its gains yesterday after touching a fresh one-month high. Current price action suggests traders are waiting for a catalyst before making the next move and with a long weekend approaching, the precious metal may remain rangebound in the short-term.
Monday’s sharp rally has given gold a shot of positive sentiment and this may last going forward. Gold broke a series of lower highs and higher lows decisively to the upside and took out the recent $1,644/oz. high made on March 26. Gold respected the 61.8% Fibonacci retracement level at $1,607.6/oz. three times in as many days and this level should now act as support in the face of any sell-off.
For gold to make a fresh eight year+ high – above $1,703.2/oz. – the $1,672/oz. - $1,675/oz. area needs to be closed above. Above here there is little in the way of resistance before the March 9 high. Gold remains supported by all three moving averages.
While the market remains slightly biased to risk-on assets, traders may look to book gains ahead of the Easter weekend. The spread of coronavirus continues and on Tuesday the US reported 1,800 fatalities, the most virus-related deaths in a single day. Globally the figure was nearly 7,400. If the figures over the next two days are higher, which according to various sources is likely, a risk-off move into the weekend may see gold gain a fresh safe-haven bid.
Gold Daily Price Chart (September 2019 – April 8, 2020)
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