We got out of the rally too early at 1627 and Gold had rallied to a high of 1689 today. MACD has formed a momentum peak and this could be a hint of a price extreme and price could be coming down but the trend is still bullish. Any decline is likely to be a correction of this gigantic rally.
There was a price gap between Friday’s closing and Monday’s opening price. This gap is likely to be a strong support zone for Gold and its bullish trend. Any decline must not close this gap or the bullish trend would be negated, at least for the short term on the hourly chart.
We remain bullish on Gold. The spread of coronavirus and Yen’s loss of its safe haven status are both likely to keep price of Gold strong. We would recommend buying near to the gap around 1660 if there is a correction. Stop can be placed at the low of the green colour gap low at 1640. Our target for this rally is at $1700.