Gold (XAUUSD) looks ready to break out and make its 2021 debut at higher prices.
If you saw my forecast on November 28th, you know gold was likely to find support between $1,700 and $1,790.
Here’s the chart I posted on November 28th:
Sure enough, XAUUSD caught a bid at $1,765, which is the location of the first channel support shown above and, of course, between $1,700 and $1,790.
Earlier this morning, I mentioned to Daily Price Action members that I felt gold was about to rocket higher at any time.
Here’s what I wrote:
A few minutes later, XAUUSD surged $25 to where it is now around $1,865.
If gold can close the day above $1,850, it would open the door to channel resistance near $1,900.
Clear that $1,900 area on a daily closing basis and XAUUSD could be on its way to $2,015 and $2,075.
So why the lofty target of $2,380?
That’s the measured objective of this bull flag pattern if I use the March low as the bottom of the flag pole.
I think XAUUSD will settle much higher than even $2,380 over the next few years.
But I don’t think anyone would complain about a $515 move from XAUUSD.
Technicals aside, the sheer amount of global stimulus that has been and will be injected into the global economy is enough to keep the gold uptrend alive.
With that in mind, I wouldn’t be at all surprised to see XAUUSD trading above $5,000 within the next few years.
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