Gold seems unstoppable after the aggressive breakout above $2,000 psychological level. The price has increased as much as $2,040.13 level, printing another all-time high. The yellow metal is strongly bullish, you don't have to be surprised if the price approaches the $2,100 level.
The USD's depreciation, along with the COVID-19 crisis and the global risk sent the gold price up towards historical highs. Technically and fundamentally, the current upside movement should continue.
I've said in my analyses that Gold could jump way higher if it stays above the warning line (WL1) of the former ascending pitchfork. I've talked about the $2,000 psychological level and about the second warning line (WL2) as potential upside targets if the price closes above the 250% Fibonacci line.
Now, the gold price has moved beyond the second warning line (WL2), it has retested it and now is pressuring the R2 ($2,036) static resistance. The next upside target is seen at the 350% Fibonacci line.
GOLD Trading TipsThe breakout above the second warning line (WL2) has added another long opportunity with targets at the 350% line and higher at the third warning line (WL3). If you are not long already, maybe you should wait for a consolidation or for a minor retreat before buying again.
The support is seen at the second warning line (WL2), so the bias will be bullish as long as it stays above this line. The breakout above the 250% Fibonacci line has invalidated a bearish divergence, so the aggressive rally is natural.
Gold is bullish, so we cannot talk about a significant decrease, corrective phase, only a potential major reversal pattern could signal a potential decline.