The gold rush continues: eyes set on $2,047

Gold chart and technical analysis

The price of Gold has rallied significantly and gained 9.6% value in the past couple of weeks. The bullish momentum still is very strong and the price will possibly remain bullish in the coming weeks.

I will wait for the price of gold to drop to the $1,948 support level and 0.786 Fibonacci level before going long on gold. The price is looking for correction after the recent rally and will most probably drop to $1,948 before going for new highs.

The bullish momentum in the price of Gold is mainly driven by the tensions in the Middle East.

XAU/USD fundamental analysis

The recent rally in the price of gold is mainly driven by fundamental factors, particularly the Palestine and Israel tensions. As long the tensions persist the price of gold will possibly keep going up. Moreover, the tensions could spiral into other regional countries and engulf the whole region.

As tensions and conflicts emerge in the international arena the price of gold usually goes up.

However, there is no high-impact news on the US dollar today that could create considerable fluctuation in the market.

Gold to US dollar trade idea takeaways

• The price of Gold will possibly continue its rally after retracing to 1,948 support level.
• I am expecting the price will rally to the $2,047 resistance level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:4.3.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!