This Precious Metal Made Four Straight Days Of Gains

8/16/2021

Gold continues to push higher amid the concerns of the delta variant and investors try to turn to the safe haven asset. China and Australia are struggling with virus outbreaks and shutdowns as economists fear another wave of potential lockdowns around the world.

Our outlook

I have been bullish gold for months now although the performance hasn't been great overall. Shutdowns are hard on a country's economy which is what will be the bullish catalyst in the short term. However, I think gold will be worth much more in the longer term as inflation keeps rising and interest rates remain low. Although lockdowns will help gold rise, I don't think that will happen again in the US as over 50% of citizens are vaccinated. So, the long term behavior is more important to me right now. I think that gold could definitely climb back to $2,000 in a year. In the short term, here is what I see:

Trade Setups

$1,789 is a clear resistance level on the 1D chart, so price will likely test that level and have the potential to retrace after four days of green. A retrace could send price down to support around $1,750, while a push above resistance could take price up to the falling trend around $1,802. Something to watch is that the 50-day has crossed back under the 200-day moving average which signals a death cross, a bearish technical signal. A triple top at $1,830 will possibly be the biggest resistance level to cross above for the metal.