The gold rush continues: eyes set on $2,047

October 20, 2023 03:51 AM PDT | By Invezz

The gold rush continues: eyes set on $2,047 — Image source: Invezz

XAU/USD trading strategy

Buy/sell asset: Buy XAU/USD
Entry price: $1,948.5
Stop loss: $1,925.0
Leverage: 1x
Take profit 1: $1,975
Take profit 2: $2,000
Take profit 3: $2,047
Timeframe: 1 week
Maximum profit: 4.3%
Maximum loss: 1.1%

Gold chart and technical analysis

The price of Gold has rallied significantly and gained 9.6% value in the past couple of weeks. The bullish momentum still is very strong and the price will possibly remain bullish in the coming weeks.

I will wait for the price of gold to drop to the $1,948 support level and 0.786 Fibonacci level before going long on gold. The price is looking for correction after the recent rally and will most probably drop to $1,948 before going for new highs.

The bullish momentum in the price of Gold is mainly driven by the tensions in the Middle East.

XAU/USD fundamental analysis

The recent rally in the price of gold is mainly driven by fundamental factors, particularly the Palestine and Israel tensions. As long the tensions persist the price of gold will possibly keep going up. Moreover, the tensions could spiral into other regional countries and engulf the whole region.

As tensions and conflicts emerge in the international arena the price of gold usually goes up.

However, there is no high-impact news on the US dollar today that could create considerable fluctuation in the market.

Gold to US dollar trade idea takeaways

• The price of Gold will possibly continue its rally after retracing to 1,948 support level.
• I am expecting the price will rally to the $2,047 resistance level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:4.3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

The post The gold rush continues: eyes set on $2,047 appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.