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Gold: Rally is Not Over Yet for FOREXCOM:XAUUSD by FBSAnalytics

Trade: Long

Closest target: $1837

Gold closed the day of September 16th under the $1764. Locally, when the price dropped under this level it reached the next support level of $1685 shortly. But right now it looks like buyers are interested in the safe-haven assets as they are trying to push the price back to above $1764. If Gold closes the Friday trading session (17.09) higher than $1764, next week will be strong for gold . In this case, the closest target will be $1837 (blue lines scenario).

On the other hand, if gold closes this week below $1764, the price might slide down to $1685-$1690 support area , which is a “buy the deep” area since April 2020 (yellow line scenario).

The third scenario is the most negative for gold lovers. If gold breaks through and closes a daily candle below the support area , the bull market will be over for gold , and bears will take full control (red line scenario).

Why do we think that gold is globally bullish?

Gold has an inverse correlation with the US dollar . And we found out that the reversal wedge , which is a bearish pattern , occurred on the US dollar index chart. In total with rising inflation in the United States, we believe that the US dollar might drop at least down to 90 in the middle term. That’s why we are absolutely bullish about gold’s future.

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