Spot gold cracked psychological $1800 barrier on Wednesday, after taking out Sep 2012 high at $1795, hitting the level for the first time since Nov 2011.
The yellow metal is in steep uptrend since Aug 2018, with stronger fluctuation seen in March this year when coronavirus crisis became global (gold price dropped from $1700 to $1450 but rebounded quickly, keeping the uptrend intact).
Demand for safe-haven gold remains strong and is expected to persist as the situation regarding global economic recovery after lockdown remains uncertain and new waves of virus infections add to concerns and prompt investors into safety.
Bulls now attack key resistances at $1800 zone (highs of Nov 2011 and Oct 2012) where recovery attempts were repeatedly rejected and gold price entered steep downtrend (2012/2015) which bottomed at $1046 in Nov 2015.
Bulls need clear break above $1800 barrier to signal continuation and unmask targets at $1900 and $1920 (Sep 2011 all-time high) and bring in sight $2000 level.
Technical studies on both, daily and weekly chart are bullish and add to positive sentiment, supporting strongly metal’s rally, however, bulls may face headwinds at this zone and delay rally for consolidation.
Projections above $1800 lay at $1823, $1839 and $1859, while immediate supports lay at $1790 and $1778.
Res: 1823, 1839, 1859, 1895
Sup: 1795, 1790, 1778, 1769
