XAUUSD: Gold Bottom in Place?

by Justin Bennett  · 

January 26, 2021

by Justin Bennett  · 

January 26, 2021

by Justin Bennett  · 

January 26, 2021


Gold (XAUUSD) looks poised for higher ground in 2021.

Despite the pullback that began last August, the market has been trending higher since 2016.

Even this latest pullback looks constructive.

Notice the bull flag pattern that has developed over the last few months.

XAUUSD daily time frame

I’ve discussed this bullish continuation pattern at length in recent weeks.

However, the big question everyone wants answers is, will the $1,770 low hold going forward?

In other words, is it a good time to buy gold?

I can’t and won’t tell you what to do with your money, but I do think there’s a good chance the $1,770 low holds.

A look at the daily time frame below shows what could be an inverse head and shoulders pattern.

For it to play out, XAUUSD bulls need to close the pair above $1,960.

Of course, if that happens, it means gold is already above the descending channel top near $1,930.

If this is a 4-hour inverse head and shoulders, the measured objective is near $2,150.

As for the bull flag above, the objective remains $2,380.

That’s true as long as XAUUSD holds above $1,770.

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XAUUSD daily time frame

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  1. THANKS MASTER, YOU KEEP MENTORING ME , I USUALLY THOUGHT THE SAME, THANKS YOU REM ON KIWI FOLLOW UP AND ITS ONE OF THE TRADES I HAVE TAKEN THIS WEEK,,,,,EURAUD WE TAKE IT TO DIP THANKS IN ADVANCE.DO YOU TRADES SOME ” BINARY ASSETS” ADMINISTERED BY BROKER CALLED DERIV.COM? ARE THEY LEGIT?

  2. Support at $1680 and if that does not hold then major support at $1435. Applied fibo levels from 2015 low to current last high (July 2020). We have had a 23.6% retracement with sideways consolidation. Look for signs of inflation setting in before it hits a bottom. Get long again once the monthly Stocastics bottom out. Bias down deeper than down 🙂

  3. Support at $1680 and if that does not hold then major support at $1435. Applied fibo levels from 2015 low to current last high (July 2020). We have had a 23.6% retracement with sideways consolidation. Look for signs of inflation setting in before it hits a bottom. Get long again once the monthly Stocastics bottom out. Bias down 🙂

  4. Hi Justin, – there’s a strong trend line on the Daily Chart from the lows in March 2020 through the higher lows in Nov 2020 – I’m considering shorting Gold if it can’t get back above that trend line on the Daily Chart and its not doing that at the moment – could you add your comments to that opinion please if you get a moment?

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