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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.
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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.