Gold Price: Continues to Build Support in an Ongoing Recovery, Rallying Past $1,500 Levels

XAUUSD Price Analysis – March 20

Through Friday’s early European session, Gold continued to gain some positive momentum into American session as it spikes to fresh daily tops around the $1500-17 range. Coordinated efforts by central banks around the world helped ease market fears over tightening liquidity conditions and triggered some USD profit-taking, all against the backdrop of the recent heavy bullish run.

Key Levels
Resistance Levels: $1,640, $1,600, $1,550
Support Levels: $1,455, $1,425, $1,381

XAUUSD Long term Trend: Bearish

On the daily time frame, Gold’s price consolidates within the $1,455–$1,500 level range. Price activity is in the middle of creating a bottom if it doesn’t split the lower support.

And the bias stays on the upside. A good breakout above the level of $1,517 will possibly see some retraction to the $1,550 handle. The pair is expected to find support at level $1,455.32 and a fall through would take them to the next level of support at $1,425.73.

XAUUSD Short term Trend: Bearish

The XAUUSD moved up strongly on the 4-hour time frame but also with a sharp decline and over the upside zone, the level at $1,504-$1,517 is the region where fresh sellers are placed due to the coronavirus, market stability has never been better in recent years.

Unless the bearish momentum continues we could see the levels of $1,455 and $1,425 tested, but if the current price holds it is probable that in the short term gold will stabilize against the Greenback.

Instrument: XAUUSD
Order: Buy
Entry price: $1,486.78
Stop: $1,455
Target: $1,517.97

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