XAU/USD outlook: Gold returns above $2000
Spot gold surged above $2000level in early Tuesday's trading, extending strong recovery from $1862 (12 Aug spike low).
The yellow metal was boosted by fresh weakness of the US dollar and Monday's news that Warren Buffet's Berkshire Hathaway buying a stake in major gold miner Barrick Gold Corp.
Today's extension higher also broke above important Fibo barrier at $1993 (61.8% of $2074/$1862 pullback) that adds to signals that corrective phase might be over. Daily techs show fresh bullish momentum and indicators in bullish setup that supports the advance, with close above $2000 needed to confirm.
Larger uptrend on strong safe-haven demand during and after coronavirus lockdown remains intact and was additionally boosted by recent break above psychological $2000 barrier.
The latest pullback on profit-taking offered better opportunities to re-enter bullish market for extension towards $2100 round-figure barrier and $2124 Fibo 123.6% projection. But investors remain cautious on latest encouraging signals over global recovery process that may limit rally and keep metal's price in extended consolidation.
Initial supports lay at $1988 (10DMA) and $1967 (20DMA), with $1920 (former record high of Sep 2011) remains key support and firm break here would signal deeper correction.
Res: 2015; 2024; 2029; 2049
Sup: 1988; 1980; 1967; 1929
Interested in XAU/USD technicals? Check out the key levels
- R3 2068.96
- R2 2029.86
- R1 2007.86
- PP 1968.76
- S1 1946.76
- S2 1907.66
- S3 1885.66
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com