Gold decreased a little in the last hours. However, this is only a temporary retreat before the price jumps higher again. The price has finally managed to take out the near-term resistance levels, so further growth is expected.
The Federal Reserve decided to keep the Federal Funds Rate unchanged at 0.25% in yesterday's monetary policy meeting. Still, the Fed could add more stimulus measures in the next meeting if the US economy deteriorates due to the second wave of the coronavirus.
XAU/USD will be very attractive if the risk-on sentiment dominates the markets in the coming weeks. More and more buyers could step and could push the rate towards new all-time highs. USD's depreciation could help the yellow metal to reach new highs.
GOLD Shines As Expected!
XAU/USD passed above the median line (ml) of the ascending pitchfork and beyond the R2 ($1,934) level, static resistance. The new higher high of 1,952 suggests further upside movement.
As I have told you in my yesterday's analysis, gold may reach at least the upper median line (uml) and the $2,000 psychological level after a valid breakout above the median line (ml).
- XAU/USD Trading Tips
The current breakout above the median line (ml) and through the R2, the new higher high, suggest buying with a fist upside target at the $2,000 level. A valid breakout above this upside obstacle signals further growth at least till the $2,075 historical high.The material has been provided by InstaForex Company - www.instaforex.com