Comex Gold made high above 1613$ last night breaking its last month high of 1611.50$. Last month gold made high when US assassinated an Iranian commander. Iran then retaliated by attacking US base in Iraq. After that Trump tried to tone things down and gold crashed from 1611$ to test 1541$. Till February 1st week gold was trading in a narrow trading zone and on every high it was making lows near 1548- 1540$ range.

This week we have seen one of the most unprecedented rise in gold prices despite a new yearly high in dollar index. Its a rare scenario that gold & dollar test yearly highs same day. Major rise in dollar index is due to its biggest contributor ( euro ). Eur/Usd testing new yearly highs which is boosting dollar and driving dollar higher. While Coronavirus fear in market driving gold prices higher.

By closing above 1600$ last night we have given highest closing of the year. This could lead to higher targets in upcoming months. However I still conclude that we need to close above 1612-1614$ in order to resume buying for major target of 2000$. However a crash from these levels will be lethal for buyers and we may see major downside of 100-120$ levels if xauusd fails to close above 1614$.

For now gold price is trading at 1609$. Good support in intraday gold chart stands at 1598$. If trader break and sustain below 1598$. Then expect good pressure in xauusd till 1590$- 1581$.

Good resistance in intraday gold stands at 1614$. If trader breaks and sustain above 1614$. Then expect good rise in comex gold till 1620$- 1629$.

Conclusion: We are in very crucial range and this range will decide the fate of gold for upcoming months. A close above 1614$ may open door for $1700 & $1800 this year. However if market slips below 1598$ then expect a good correction in precious metal pack.

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By marafat