XAUUSD (gold) buyers are having a tough time gaining any real momentum.
Despite last week closing above $1,850, gold is trading below its previous weekly close.
I mentioned that break above $1,850 last Saturday.
However, that isn’t surprising.
We’ve known about the bull flag pattern on the daily chart for weeks.
The resistance level of that channel appears to have stopped XAUUSD buyers in their tracks this week.
At the same time, we know how significant the $1,750 to $1,800 support area is based on the 2011 and 2012 highs.
I’ve mentioned that area above $1,750 for over a month now.
Those who saw the November 28th forecast video were able to time the recent bounce from that $1,750 area.
But none of that matters while XAUUSD is below the $1,900 region.
That’s the resistance area I’ve discussed in every forecast and commentary since early November.
Until XAUUSD clears that resistance area followed by $1,920/30, we should expect this sideways price action to continue.
That said, don’t sleep on gold’s bullish potential.
It may take a while for gold bulls to get going, but I’m anticipating a lot of upside momentum in 2021.
As I wrote on December 7th, the measured objective of the bull flag pattern below is $2,380.
In fact, I think XAUUSD has the potential to settle even higher than that over the coming years.
But a move to $2,380 would complete an impressive $500 rally from today’s price.
For now, though, XAUUSD bulls need to get through $1,900 and $1,920 on a daily closing basis to open the door to $2,015 and $2,075.
The $1,850 area remains key support.