Gold breaks all major resistance levels, resumes upward journey

FXOpen

Gold carried on upside movement on Monday after breaking some very critical resistance levels last week, the yellow metal is expected to take retracement from current levels, as per price action analysis.

At the moment of writing in Asian session, bullion futures are being traded near $1325 an ounce with immediate hurdle seen around $1337 which is an important 61.8% fib level, ahead of $1360-$1375 resistance zone that is a historical supply area and 76.4% fib level. A break and daily close above $1375 shall expose new multi-month highs above $1400.

Gold breaks all major resistance levels, resumes upward journey

On downside, the precious metal is likely to find support near $1307 i.e. 50% fib level as shown in the above chart. A break and daily close below $1307 shall expose further downside movement up to $1291 -$1275 support area where both 200 Daily Moving Average (200 DMA) and 38.2% fib level are currently sitting in. The bias will remain bullish as far as the price is above $1237, the swing low of the previous wave.

Sharp buying sentiment was triggered in gold last week when a government report said that exports of China jumped by 10.6% in January, well above the market expectation of mere 2%. The unusual jump in exports spurred optimism about growth as the Asian nation is an export-based economy. Gold bulls always cheer every positive development about China, because the country is the biggest consumer of the precious metal.

Moreover, a series of negative economic reports about the US economy such as unexpected slump in January retail sales and surprise rise in initial jobless claims put the greenback under strong selling pressure, which in turn accelerated the bullish momentum in bullion price. The ongoing upward trend in the yellow metal is the biggest winning streak since the crash of April 2013. 

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.