Gold has been trading in a sideways mode since Aug 2019 and it been 4 months of sideways price action. However, Friday rally in Gold brings a potential trend reversal with short term trend & Trading sentiment turning positive.
In the early hours of Thursday, Trump signed the Hong Kong Bill to protect Hong Kong protestors that could bring some geopolitical tensions between US-China.
ADX levels on the hourly charts crossed above 20 levels with solid momentum which is a positive sentiment for the trend reversal to maintain strong and could propel the gold price further higher in the upcoming session.
Short term supports are holding around the 1450 – psychological reference level. Gold futures surged to the upside late Friday after the U.S. Dollar plunged against a group of major currencies into the close.
The Friday momentum could further get extended, which could push gold prices towards the next psychological mark 1500 and 1520 levels in the near term.