Gold has been considered a highly valuable commodity for millennia and the gold price is widely followed in financial markets around the world. Most commonly quoted in US Dollars (XAU/USD), gold price tends to increase as stocks and bonds decline. The metal holds its value well, making it a reliable safe-haven.
SUPPORT & RESISTANCE
An additional signal in favor of a rise in quotes and prices for GOLD in the current trading week December 28, 2020 ó January 1, 2021 will be a test of the rising trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the growth option for XAU/USD quotes will be a fall and a breakdown of the area of 1715. This will indicate a breakdown of the support level and a continued fall in GOLD prices with a target below the level of 1655. Confirmation of the growth in the value of the asset will be a breakdown of the resistance area and closing of quotes above the level of 1975, which will indicate breakdown of the upper border of the descending channel and completion of the current correction in Gold.
GOLD Price Forecast December 28, 2020 , January 1, 2021 assumes an attempt to test the support level near the 1845 area. Then, the GOLD prices will continue to rise with a target above the level of 2125. A test of the trend line on the relative strength index (RSI) will be in favor of raising the quotes. Cancellation of the GOLD growth option will be a fall and a breakdown of the level of 1715. This will indicate a continued decline in quotations to the area below the level of 1655.
Gold price settles around 1875.00 level, and continues the attempts to breach to support the chances of continuing the main bullish trend, which moves organized inside the bullish channel that appears on the chart, supported by the EMA50 that continues to carry the price from below.
Therefore, we will continue to suggest the bullish trend for the upcoming period conditioned by the price stability above 1862.00, noting that our next targets begin at 1911.50 and extend to 1928.60.