Gold soars and stands above the 2000
Spot Gold Soars and Stands Above $2,000
In fact, investors continue to wait for the result of the negotiations between Democrats and Republicans on new coronavirus relief measures.
The gold holding of global gold-backed ETF rose to 3,365.6 tons on Monday, up 30.5% this year, according to Bloomberg. The ETF's holding is being the second of the world, surpassing Germany's holding.
Recently, investment bank Goldman Sachs raised the 12-month price forecast of gold from $2,000 to $2,300 on weaker U.S. dollar, rising geopolitical tensions and the U.S. domestic and social uncertainty.
Gold (Short Term): Further upside expected
Source: GAIN Capital, TradingView
On a daily chart, spot gold continues to shoot up after taking a breath for around 1-week.
The relative strength index stayed around its overbought level at 80, suggesting the extreme upside momentum for the prices.
The nearest support level is located at $1,935 (the low of consolidation area), while the resistance levels would be located at $2,070 and $2,130.
Gold (Intraday): Bullish bias above $1,980
Source: Gain Capital, TradingView
On a 1-hour chart, spot gold confirmed a breakout of the ascending triangle, suggesting the resumption of the recent bullish trend.
Currently, the prices posted a pullback after running up to $2,031, but the prices remain supported by both rising 20-period and 50-period moving averages.
Hence, as long as the support level at $1,980 (around the neckline of ascending triangle) is not broken, spot gold should bring a retest of the previous high at $2,031 before rising to the second resistance level at $2,070.
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