Gold Price : XAU/USD Forcast for 2021

GOLD PRICES became massively overbought during this summer’s bullish run; but since setting that high in August, Gold has put in four-plus months of digestion. Normally markets are quieting in preparation for a low-liquidity backdrop as the Christmas holiday approaches. Traders’ attention is on toys and parties more so than support or resistance breaks, at least usually; but this year sees a number of peculiarities and these have been voiced fairly clearly through markets during this outlandish year of 2020.

 

GOLD PRICES have remained in the spotlight throughout the year. After the pivot in 2019, FOMC would continue to soften policy sooner than anyone could’ve expected.

Gold Price : Daily Chart

At this point, Gold prices are bound by both big support and big resistance. For support, the same zone that caught the lows four months ago remains in-play today. For resistance – we’re looking at another confluent zone of prior support, spanning from the 1900 psychological level up to the 1920 prior all-time-high.

Gold Prices Near-Term : Bullish Construction Continues

Going down to shorter-term charts may add some enthusiasm for the topside theme in Gold prices. Since setting a fresh four-month-low in early-December, buyers have continued to pose a series of higher-highs and higher-lows. Last week was especially important for that backdrop as buyers put in multiple defenses of support around 1823.71, which is the 61.8% retracement of the June-August major move. This is the same study from which that four-month-low was defined, around the 76.4% retracement of that same study.

Notable is the continued pattern of higher-highs and higher-lows, with current support grasping for the 50% marker from that same major move.

Gold Price : Four Hour Chart

Gold Prices Intermediate-Term

For those with bearish Gold biases, there could possibly be supportive criteria from an intermediate-term time frame. This would largely be built around the idea that the December strength is corrective in terms of a longer-term bearish scenario. The recent lower-low, combined with a hold of resistance around prior support, could keep the door open for short-side trends.

Also supportive of that theme is yesterday’s doji, which spanned from support to resistance. Doji formations highlight indecision, and the fact that this printed after a couple of weeks of strength indicates that there could, possibly, be a change-of-pace.

Gold Price : Eight Hour Chart

Chart prepared by James StanleyGold on Tradingview — Written by James StanleyStrategist for DailyFX.com

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