XAU/USD outlook: Gold continues to shine and hit new all-time high
GOLD
Spot gold surged to new all-time high ($1944) in early Monday’s trading, extending last week’s 5% rally.
Deepening crisis between the US and China further boosted safe-haven demand and deflated dollar which fell to the lowest in nearly two-years.
Break of former top at $1920 was quite fast, although we expected stronger headwinds her, but current circumstances with high political tensions, rising number of new virus cases and uncertainty about global economic recovery, prompted investors into safety.
Apart from very bullish fundamentals, technical studies on daily and weekly chart are strongly overbought and continue to warn of correction, but still lacking firmer signals that keeps near-term focus at the upside.
Today’s close above former all-time high will generate initial bullish signal for extension towards psychological $2000 barrier, with dip-buying above $1900 seen as favored near-term scenario.
Caution on return and close below $1900 that would signal deeper pullback.
Res: 1944; 1950; 1975; 2000
Sup: 1920; 1900; 1886; 1870
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