Gold (XAUUSD) hasn’t performed well of late.
And that’s an understatement.
Since carving a 2020 high at 2075, gold has declined over 12%.
While I still think XAUUSD will rally in 2021, it won’t do nearly as well as Bitcoin.
If 2020 is any guide, Bitcoin will outperform gold by a long shot!
So far this year, gold is up about 20%.
Meanwhile, Bitcoin is up a staggering 167% this year.
Bitcoin is also up 114% since I publicly mentioned my interest on May 5th.
I was buying BTC starting in early April, which I also discussed in the Daily Price Action member’s area.
So, while XAUUSD may offer some trading opportunities as we head into 2021, it isn’t the best choice to hedge against the money printers.
That title goes to Bitcoin.
As for the XAUUSD technicals, the pair is fast approaching the 1790 support level I’ve mentioned several times this year.
That’s a critical area that dates back to 2011 and 2012.
If gold can hold above the 1790 support area on a daily and weekly closing basis, I like the yellow metal higher.
Buyers would also need to close the pair back above 1850.
If, on the other hand, it closes below 1790, we could see an extended pullback toward 1680.