Gold with a very bullish start into 2020 – 1,650/700 USD as target activated
Source: Economic Events January 8, 2020 - Admiral Markets' Forex Calendar
Driven by the recent developments in the Middle East last beginning last Friday and continuing through to today, as fears rise that a war between the US and Iran could be about to start, Gold profited from the resulting risk-off mode.
As 10-year US-Treasury yields drop, Gold took on momentum, driven also by the bullish seasonal window from Mid-December through Mid-January (displayed in orange).
While the mode looks a little extended on the upside, the yield-sensitive precious metal is also known for its trend stability, meaning that we could see a direct push up to the next potential target region of around 1,650/700 USD.
Technically, the break above the 2019 yearly highs around 1,557 USD is a clear bullish sign, with 1,557 USD and below 1,520/525 USD acting as potential long trigger.
On a daily time-frame Gold stays bullish as long as we trade above 1,440/450 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between October 5, 2018, to January 7, 2020). Accessed: January 7, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
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