Gold price completed a bullish breakout this week. Fundamental reason behind this up-move was sharp decline of US Treasury Bond Yields.
But since I am a technical analyst, for me Fundamental reasons come after Technical reasons. So, in the image below you can see how I read the price-action.
Image by tradingview.com
In the above image you can see the weekly chart of XAU/USD (GOLD) in which as per fibonacci retracement, price took support and reversed from the key level of 61.80%.
That is, even before the news of the decline in US treasury bond yield, technical analysts had an idea of this big change in the price.
Image by tradingview.com
Now as per the Daily time frame, in the above image if you focus on the yellow circle, you will find that as soon as the price crossed above 1,935 at that place, there is now a psychological shift in price that has been technically confirmed, which could lead to a bigger rally.
From here as long as XAU/USD (GOLD) holds above 1,950, traders could remain interested in buying.
Now as per my analysis, levels on the higher side could be 1959.55, 1963.60, 1966.00, 1970.50, 1974.80, 1977.00, 1983.30.
And if by any chance price breaks below 1950 then the levels on the down side would be 1945.20, 1940.80, 1935.00 1930.55.
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