Gold rushing upward

Gold is unstoppable since the second-half of December. The price rallying higher and reach $1,550 without much trouble. At the start of the year, the price continue further upward boosted by growing tension in the Middle East. U.S attack on Iran that killed General Qasem Soleimani retaliated by the abandonment of the nuclear limit by Iran. Traders and investors flight to safe-haven assets expected to continue.

It is better to let the gold prices move further higher at the moment while observing the development of the situation between the U.S and Iran.

Click here to see Gold December 2019 forecast.

New Month

Monthly Chart

A bullish breakthrough happened at the beginning of the year as Iran-U.S tension spiked. Gold reached a level it has not seen since seven years ago. We could expect further bullish pressure in the precious metal for now at least until the tension between the two countries decreased.

Traders might want to continue to hold long positions in gold with the top of the channel as the target.

Weekly Chart

No stop to the bullish pressure in gold prices yet. The precious metal currently moves past $1,550 and tested $1,586.15 resistance. Without any change in the bullish pressure, we think gold will reach $1,600 and higher in the coming days.

Daily Chart

A breakout has happened and no stop to the bullish pressure in the gold prices yet. Today, gold tested $1,586.15 and slightly lower from the high. The price may trade between $1,550 – $1,586.15 while building further bullish pressure.

Trade Plan

Bullish trade – Wait until a bearish correction toward $1,550 happens. Only enter when the bearish pressure recedes and the price shows a bullish close.

Bearish trade – Under the current fundamental situation, short positions are not ideal. However, traders could observe $1,586.15 and $1,600 for reference to look for short-term short positions. Remember to place a stop order above the levels.