Gold Technical Analysis Report 7 May, 2021

• Gold broke resistance zone
• Likely to rise to resistance level 1850.00

Gold continues to rise after the earlier breakout of the resistance zone lying between the round resistance level 1800.00 (which was set as the likely upward target in our earlier forecast for this instrument), resistance level 1820.00 (former minor correction high from February) and the 61.8% Fibonacci correction of the previous sharp downward impulse from January. The breakout of this resistance area should accelerate the active impulse waves 5 of the (1).

Given the continued safe-haven inflows on covid-19 cases acceleration in India and France-UK tensions – Gold can be expected to rise further toward the next resistance level 1850.00 (monthly high from February and the target for the completion of the active impulse waves 5 of the (1)).

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