Gold Price Analysis: A Bull-Run Could Be Lurking Around the Corner

Gold Price Analysis: A Bull-Run Could Be Lurking Around the Corner

Gold (XAU/USD) appears to be stabilizing around the $1,930 area after an extremely-erratic period triggered by heavy profit-taking, which saw the commodity fall by more than $200 over a few days. Gold has since recovered by about $100 from that decline.

At the moment, gold bulls have now gone into “hibernation” following a strong recovery in the US dollar from a two-year low.

The greenback started picking up momentum after the executive order sanctioning Hong Kong leader Carry Liam and the outright ban of Chinese businesses like TikTok and WeChat. Additional support was granted to the USD after the US released a better-than-expected NFP data for July.

The greenback got a further boost after US President Donald Trump authorized four other executive orders over the weekend. These orders placated the stimulus deadlock by granting a $400 unemployment benefit, stopped house evictions for tenants with federal financial support, and eased the recovery of student loans.

Moving on, China’s July inflation report could have some effect on the market, however, the absence of Japanese traders could suppress that influence. Other major factors headlining the markets in the near-term are the US-America tensions and new developments surrounding the Coronavirus crisis.

Nonetheless, gold bulls are still in the driver’s seat on this as the pandemic is still well in play and the $2,000 target remains largely attainable.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — August 13

XAU/USD Major Bias: Bullish

Supply Levels: $1,960, $1,983, and $2,000

Demand Levels: $1,900, $1,864, and $1,840

Gold appears to have entered a mini consolidation phase in the near-term between the $1,940 and $1,918 levels. An ascending trendline from the 15th of July remains in play as gold tries to retake the $1,940 resistance.

In the meantime, we can observe on our MACD that the yellow metal is still reeling from oversold conditions, that said, a surge to the 14.62 level on the indicator can be expected in the near-term. Which means a bull run to the $1,960-83 region could be seen soon.

On the flip side, a breach of our trendline could swiftly send gold to the $1,900 psychological line again.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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