Gold Recover Traction as Investors Renew Hopes in the Safe-Haven

XAUUSD Price Analysis – February 26

During the Asian session, gold rose to a higher level into the European Session on Wednesday and is currently at the top of its daily trading range of $1625-55 levels. Fears of the global outbreak and impact of the new virus on the global economy have compensated for a modest recovery in the global risk bias.

key Levels
Resistance Levels: $1,689, $1,663, $ 1,655
Support Levels: $1,625, $1,611, $1,585

XAUUSD Long term Trend: Bullish

XAUUSD was down more than 0.70% during the day. This happens immediately after the price has risen to a seven-year high. While trading past the level of $1,640, large bulls may stay untouched and shortly focus on immediate goals at $1,689 / $1,700, as traders stay cautious and set for new purchases in safe-havens because of fears of coronavirus pandemic.

A clear breakthrough of the $ 1,640 level, on the other hand, can give the first reversal signal and open the way for a deeper correction to the next significant support levels at $1,625/11 and the $1,600 level in case of expansion.

XAUUSD Short term Trend: Bullish

On the 4-hour timeframe, we see a continuation of the bullish movement after the rollback, while the recovery from the $1,625 level recent low is encouraging, the metal has yet to defy the channel’s falling resistance at $ 1,655.

Closing this level may mean the end of the rollback from recent highs near the level of $ 1,689 and may change the risk in favor of raising to the level of $ 1,655. A breakthrough is likely to stay unattainable if prices find recognition beneath the session low of $ 1,636 level.

Instrument: XAUUSD
Order: Buy
Entry price: $1,636
Stop: $ 1,625
Target: $1,660

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