As per the FOREX GOLD chart idea I have been posting in the last few weeks, the gold is in accumulation stages and GOLDPETAL Contracts are being traded in the MCX with good volumes.
The following idea shows that GOLD has had very strong RSI with above 40 in the last two months.
Price breakout chart in USD can be seen below for XAUUSD.
As everyone is expecting gold to break alltime high $2075 before US presidential election, the chart says gold will slide & trade in the range of $1736-1802 (demand zone) before making any further move upside.
Long term demand zone $1560-1682
Fibo extension supply zone @2158-2460-2685
Expecting gold not to break $2075 within 3 months of time frame.
This might be the first sign of Gold's another bull run to test its previous high. INR 49000 is a strong support for gold. Even if its falls below it cannot break 46000. So start buying now averaging below secure a hefty profit opportunity in gold.
Gold can take support at $1750/oz which approx 43K-44K/10 gram of gold in India. As the dollar is increasing due stimulus provided by Central Bank in US. If you are planning to buy Gold you can start buying but wait for the above level to complete your buying.
Last week has seen tremendous downfall in the global markets with the COVID-19 vaacine no where to be seen.
Major markets reacted to supposedly possible "LOCKDOWN 2.0" in many other parts of the world.
In India, We have seen NIFTY react and fall below 11400 & Bank Nifty make huge falls in the last few trading session.
Investors weary with the major markets...
As per my last week idea, there was a strong rejection zone formed on the upside. In the last trading sesssion we saw GOLD break the drawn Rejection line with a small breakout above into our accumulation zone.
Currently, GOLD has taken support along the previous rejection line.
Still there is no good news about any vaccine regarding COVID-19, there is still heavy hedging by investors in Gold to protect their funds. Gold is within the accmulation zone and has been range bound in the last few weeks.
Downside breakout was tried but failed and bounce back was seen in the last 2-4 trading session.
GOLD is bullish.