- Unstoppable Gold – Up more than $ 30 from Thursday’s close.
- After limited pullback, XAU / USD picks up again and sets new highs in a month and a half.
Gold is up almost 2% in the first session of 2021. The metal is shining, driven by a weak dollar and technical factors. The price has just risen to $ 1,936 an ounce, the highest level since November 9. It is operating in the zone of the highs, validating the daily gains.
Between the Factors that are driving the advance of the XAU / USD, is the weakness of the dollar. DXY is trading at the lows since April 2018, below 89.50. The dollar does not rise against the yen, despite the positive climate of risk in the markets. Stock markets are rising strongly in Europe and Wall Street futures point to a higher open, with new records.
The technical aspect also appears to have boosted gold. After testing the $ 1900 area for two weeks, without being able to assert itself above, the start of the week was well above and the subsequent rise confirmed the break, for the moment. This motivated more purchases, and made every pullback in the last few hours limited.
The technical outlook looks positive for gold, even despite the overbought indicators in the very short term. The next strong resistance zone appears at $ 1950/55 and above then $ 1975 will follow. In the opposite direction, $ 1925/30 is the first support of consideration.