- Gold has broken higher and is very close to the $1800 level.
- The next main resistance is the all-time high!.
Gold looks set to reach the 8.6 year high during the US session on Tuesday as fears about the coronavirus persist. The demand for physical gold has been increasing with central banks around the world stockpiling the precious metal. SPDR gold ETF holdings are over their 8-year peak increasing by 211.9 tonnes, or nearly 22%, in the second quarter
The last time gold was trading at this level was the back in 2011. The level was used as the consolidation high after the precious metal hit its peak in September of USD 1921.07 per troy ounce and then pulled back.
Now the aforementioned peak of USD 1921.07 per troy once could bow be the next target for the bulls as the uncertain landscape continues and the worlds central banks keep the printers switched on.
Gold monthly chart
The monthly chart below shows how close the price is to the all-time high. If the USD 1800 per ounce level does give way then the probability of a test becomes far larger. Beyond that, the sky is the limit.
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Gold 4-hour chart
The 4-hour chart shows the confluence of zones all matching up nicely. The 138.2% Fib extension is matching up very closely to the USD 1800 per troy ounce level. There is also a trendline connecting the last two peaks that could become a resistance zone. Looking at the Relative Strength Index a bearish divergence is setting up but there have been many in this bull trend.
-637297487131766012.png)
Additional levels
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