After months of consolidating and mean reverting between a strong support and resistance zone, gold has recently made new highs and broken from the strong resistance level (last time it was at this price level was 2012).
I would expect the next resistance to be around 1790-1800, which was a very strong resistance last time gold was at this level 8-9 years ago.
Fundamentals remain strong with many countries easing monetary policy and trying all they can do to expand the money supply (IE: Zero US fed funds rate target, etc.), meaning less confidence in the fiat currencies. That paired with economic uncertainties due to increase in covid cases gives gold a strong reason to rally in the coming months.
Regardless of the long strategy setup, I expect a big swing in either direction. In other words, if price rejects this resistance (because it is still very close to previous resistance) and break lower, a reversal (short) trade may be in the books as well.
I would expect the next resistance to be around 1790-1800, which was a very strong resistance last time gold was at this level 8-9 years ago.
Fundamentals remain strong with many countries easing monetary policy and trying all they can do to expand the money supply (IE: Zero US fed funds rate target, etc.), meaning less confidence in the fiat currencies. That paired with economic uncertainties due to increase in covid cases gives gold a strong reason to rally in the coming months.
Regardless of the long strategy setup, I expect a big swing in either direction. In other words, if price rejects this resistance (because it is still very close to previous resistance) and break lower, a reversal (short) trade may be in the books as well.