Second clear break above 1700 for Gold
After going through the handle that was proving as a strong resistance for the first time last week, earlier today spot Gold went through it again. The high from last week stands at 1747.745, and we will see whether the momentum keeps the precious metal going towards that level. Normally the second break above a particular level could prove as a potential easier entry into a trade in the same direction. Whether resistance occurs around the 1750 again is something we will have to wait and see. So far buying the dip seems to have worked well for Gold bulls and with yesterday's low standing at 1659.375, we have had a bigger than 50 point upside move over 48 hours.
Gold spot daily chart
To put things in perspective and have a better idea of where we are standing in Gold markets have a look at the weekly chart below.
Gold spot weekly chart
Blue line (all time high 1921.11)
Black line (8 november 2011 high 1803.10)
Red line (1747.745 last week high)
Green line (1700)
Purple line (Yesterday's low 1655.651)
If the move up potentially continues and we break above the high of last week, the next resistance level to watch is 1800. Then we have the next handle of 1900 and finally the all time high of 1921.110. Whether we get there and how long it takes will be dependent on the level of damage to the economy which Covid 19 does. Breaking above the all time highs will take us into unknown territory and 2000 handle would be in sight. With Bank of America changing their 18 month target price for gold from 2000 to 3000(Bloomberg)* it seems that the expectations are for increased demand going forward.