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The gold previous wave high of USD 1644.54 has now been broken indicating a move higher, in the opinion of Rajan Dhall from FXStreet.

Key quotes

“In the US jobless claims are on the rise and employment looks like it will be hit hard. This is one of the main reasons the market may be bullish on gold. It is very hard to estimate the impact of store closures and reductions in productivity in such a short space of time.” 

“The previous wave of USD 1644.54 has now been taken out to the upside. This area could be a support zone if the price pulls back, which often happens.”

“The Fibonacci projections are showing some decent upside targets for the patient bulls. The 138.2% is holding at USD 1676.45 and the 161.8% is closer to the USD 1700 level at USD 1695.00.”