GOLD futures buy opportunities

GOLD XAUUSD and Gold futures have been rallying for weeks and months providing buy opportunities. The attached GOLD chart below represents the weekly timeframe, that is, a longer term analysis with each candlestick representing a week worth of time.

Gold clear uptrend

There is a very strong weekly imbalance located at #1 much lower around 1.478 but it seems that price is not retracing to that strong imbalance and will be rallying further given the type price action we can see on Gold weekly timeframe. We are expecting W highs at #2 around 1.612 to be eliminated, we can see a strong impulse being created around 1.583.

There is a clear bullish bias on the weekly timeframe, the odds are with longs and not shorts.

Gold futures chart analysis

GOLD futures buy opportunities
GOLD futures buy opportunities

You can use this longer term analysis of Gold to buy in smaller timeframes using other strategies, you can use indicators and oscillators if you want, we don’t need them to place a trade using supply and demand imbalances.

Gold XAUUSD and Gold Futures fundamental analysis

What is fundamental analysis telling us on Gold? Well, we don’t need fundamental analysis to place a trade on Gold or Gold Futures, but this is what we can read about its fundamentals…

Gold prices inched up on Wednesday as traders await the U.S. Federal Reserve’s minutes of its latest meeting, which is due later in the day. Gold Futures for April delivery gained 0.2% to $1,607.25 by 1:45 AM ET (05:45 GMT).

Gold gained more than 5% so far this year is now near its highest level since year 2013. Fears of the new coronavirus and its impact on global growth pushed the safe-haven metal higher, while speculation that the Fed might reduce interest rates were also cited as a tail wind.

Well, if you think a virus in China is going to affect the price of gold, go ahead and keep on thinking that 🙂

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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