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According to MarketMilk™, gold (XAU/USD) performed well last week, ending with a gain of over 8%.

It’s also showing bullish price momentum with its 3-month, 6-month, and yearly performances all in the green.

Here’s a chart of how XAU/USD has performed over multiple timeframes:

Gold Price Performance

Currently, gold’s Trend Following Rating is “Bullish”.

Gold's Trend Rating

Looking at the rating’s breakdown, we can see that gold is trading above ALL its simple moving averages from its 5 SMA to 200 SMA.

Gold's Simple Moving Averages

Gold is also trading above all its exponential moving averages from its 5 EMA to 200 EMA.

Gold's Exponentital Moving Averages

Gold’s short-term trend strength is bullish.

Gold's Short-Term Trend Strength

As well as its long-term trend strength.

Gold's Long-Trem Trend Strength

Let’s take a look at gold’s daily (1D) chart.

Gold Daily Chart - 03/27/2020

We can see that the price fell all the way down to its 200 SMA, chopped it up for a bit, but this dynamic support level was able to eventually hold.

Price rebounded and is now trading back above its 20 and 50 simple moving averages.

Near-term support levels are 1580….and then 1500….and then 1452.

Let’s zoom out a bit and take a look at gold’s weekly (1W) chart.

Gold's Weekly Chart - 03272020

Gold had been in a multi-year consolidation trading between 1046, its 2015 low and 1375, its 2016 high.

In 2019, it finally broke out!

The next major resistance area is 1800….and then at its all-time high at 1920.

Gold is also trading above its 20 (orange) and 50 (blue) simple moving averages. And waaay above its 200 SMA (purple).

All bullish signs.

In the near-term, I look for any price weakness to bounce off the 50 SMA (blue line)

With global central banks “printing” money and “making it rain” to try and support their economies, I see increased demand for gold as investors look to hedge against long-term inflation risk.

Back in August 2008, during the Great Financial Crisis, gold prices initially fell ~20% from 875 to about 710…and then went on a bull run and almost tripled in the next 3 years.

With the market meltdown due to the Coronavirus Crisis, something similar could happen again.

We already saw gold fall from a recent high of 1703 fall to 1452 and rebound.

Last month (Feb), gold reached a monthly high of 1689. 

With March coming to an end this week, a close above Feb’s monthly high would imply further advance to the upside.

Here’s my trade idea…

Long XAU/USD at 1600.

Stop loss (SL) at 1540.

Initial profit target (PT) at 1800.

But will look to target gold’s record high at 1920.

Is it gold in here?

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.