Gold’s uncharted area

The bullish movement of gold prices continue without any stop as tariff war intensify. There was a pause in the tariff war, however, escalation continue between U.S. and China. Global market is restless against the event and decide to dump everything (U.S. dollar no exception). Usually, when uncertainties rising, people flocking to safe haven currencies, but this time, outflow happened and gold prices experience sharp increase.

Without major change in the situation, traders could expect gold prices to continue its climb.

New Month

Monthly Chart

Its a vertical movement on the monthly chart and no bearish close yet since start of the year. The upward movement will eventually stop and reversed. However, we could see strong momentum in the candlestick movement, which mean it won’t happen in the short-term. Despite the situation, traders will stay cautious buying at the high level as sudden bearish reversal could happen.

Weekly Chart

Gold prices on the weekly chart, more or less, the same as on the monthly chart. The upward movement only produced 2 bearish weekly close out of 15 weeks. The bull is in complete control and there is no bearish sign yet. $3,500 has been reached and $4,000 seems not too far after we see movement from $3,000 to $3,500 in less than 2 months.

Daily Chart

On the daily chart, we stacked the Fibonacci extension level and see that the area between $3,445 – $3,514 as major resistance level. Price might stall near the area and start a bearish correction. If the bearish correction happen, then traders will observe the area between $3,167 – $3,224 as potential target. Above the area, there is the level around $3,342 – $3,357 (Latest broken highs) which will act as minor support.

Trade Plan

Traders will wait for bearish pullback in gold prices to $3,342 – $3,357 and $3,167 – $3,224. When the bearish pullback hit the levels and produce bullish reactions, traders could enter long positions.

If traders want to speculate with aggressive long positions, then traders could use lower time frame to do short-term trading.