Daily Price Action
Shares

XAUUSD: Gold Positioned to Break Higher in 2021

Shares

I usually write to you as a trader, but I want to take a different approach today.

As Daily Price Action members know, I’ve liked XAUUSD higher since April 2020 when it was trading near $1,600.

And my bullish gold bias hasn’t changed.

But instead of treating it as a trade, I’ve favored investing in the junior gold miner stocks, which tend to follow gold’s trajectory.

Why stocks?

For one, spot metals are off-limits in the US.

And two, buying mining stocks, especially the juniors, is similar to a leveraged bet without the margin.

For instance, I started purchasing junior gold mining stocks on April 1st, 2020.

Since then, XAUUSD is up about 16%

The junior gold miners index (GDXJ), on the other hand, is up an impressive 75% despite its recent pullback.

I also have some futures exposure, but the mining stocks offer a way to outperform gold without any leverage.

All of this is just my opinion, as always, and is not financial advice.

The key takeaway here is that I prefer XAUUSD and the gold miners as a longer-term trade/investment with a minimum 12-month time horizon.

I think that’s the best way to navigate gold right now as it allows one to capture the upside potential without the headaches from false starts.

In the short-term, the $1,780 area is key support.

Critical resistance is near $1,930, which is the top of a potential bull flag.

XAUUSD buyers need to clear that $1,930 area on a daily closing basis to confirm the breakout and re-open the door to $2,075.

Want to Watch the XAUUSD Video I Just Released to Members?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in January!

XAUUSD daily time frame

Leave a Comment:

12 comments
Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 4,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in January!

Reply
Fadhil says

I think there is a mistake on gold price sir. It should be 1780 for the next support. Thanks

Reply
    Justin Bennett says

    Thanks. Fixed.

    Reply
Amraphakafsy says

Great work!

I see a possibility of retesting the support again making it a double bottom before the uptrend.

Let’s watch and see.

Reply
Iwan Fajri says

i thought that the key support is $1780 instead of $1180 as illustrated on rightscale of your chart

Reply
Caleb Gitonga says

Excellent analysis as always. Thumbs up and regards…

Reply
Masoud says

Thanks

Reply
Ngo Sy Ha says

thanks you so much

Reply
The Kid says

Thanks Justin for the heads up. For a 12 month horizon, check out the monthly technicals. Spot gold bias is downward with some way to go. (Macd is topping out, RSI downward bias and Stochastics some way off bottoming). I am seeing sideways action on monthly with negative bias. It has completed a 23.6% retracement from new high with next support down at 38.2 % ($1625 ish).

Reply
Justice says

Good morning Justin.
Thanks for the great work.
Please how could one buy these stocks like Junior miners, Tesla, Netflix, etc off leverage and CFDs brokers? I dont know if people from Africa or Nigeria has access to buying penny stocks.
Thanks for your response.

Reply
ali says

thanks for the up date.

Reply
Alex says

I want to invest in gold. But, I am a noob. Terms that are familiar for you are like enigma for me like XAUUSD. Of course, if I keep reading and watching vids, I’ll eventually learn. Everybody started somewhere. I have to keep learn, trying and failing until I figure it out.

Reply
Add Your Reply