Gold price forecast:
The price of gold will rise to its highest level from January, can it continue?
Gold rose to its highest price in early January as US Treasury yields fell amid falling US dollar. The rise in gold prices exceeds the upper limit of the channel, which descends from August, and adds to its protest, which began in early April, when gold traded below $ 1,700.
Gold (XAU / USD) Price Chart: Daily Schedule (July 2020 – May 2021)
The XAU / USD has since subscribed to $ 1,900 and may continue to rise if the Fed abandons the narrowing call and the US dollar falls further as a result. The steady and undirected movement of US Treasury interest rates, as the market has seen in recent weeks, could also open the door to a higher rise in gold. While the fundamental landscape and market sentiment may change at any time, the technical outlook for XAU / USD is encouraging.
Gold (XAU / USD) Price Chart: 4-Hour Schedule (August 2020 – May 2021)
With this in mind, gold bulls can look for hay, so to speak, until the sun shines, as the main landscape allows. Initial resistance can be around the $ 1,920 limit, although secondary resistance of around $ 1,960-65 is likely to be a more intimidating zone. Above the two levels, the resistance becomes quite sparse, until the metal’s all-time high is $ 2,080.
Unlike the big downward trend in August, there are now weeks behind the gold, which in the event of a lower turnaround may create support zones below. Such a reversal is likely to materialize in a fundamental shift.
Early support is located along the upper limit of the descending channel and about $ 1,850. In either case, gold appears to be in the midst of a rising breakthrough, which could see further progress in the coming days. In the meantime, follow up @PeterHanksFX For Twitter updates and analysis.
– Written by Peter Hanks Strategist to DailyFX.com
Get in touch and follow Peter on Twitter @PeterHanksFX