Gold is benefiting from the current market turmoil and looks set to reach 1625 within one to three months, says George Davis, Chief Technical Strategist at RBC Capital Markets.
Davis thinks a close above 1589 would target the 2020 high at 1611, with resistance then found at 1620 and 1630 (see Chart). He points out there is now scope to push upwards again given the RSI has worked off its extreme ‘overbought’ levels from early January.
Davis thinks that support at 1561 and 1546 will attract buying interest while coronavirus concerns remain. A break below the recent low at 1536, however, would suggest that risk sentiment is improving.