Gold rockets higher as USD debasement continues.

04/01/2021

Monday has been a great day for metals so far, with gold trading 2% stronger at around 1,930 USD (an unusual bullish move as of lately), silver soared more than 3%, and copper was 2.4% higher. 

It looks like gold has finally managed to cancel the medium-term downtrend as the bullion jumped above the strong bearish trendline, which has been limiting the upward movement since August. Thus, the short-term outlook now seems bullish, and if the price closes above this trend line on a weekly basis, the medium-term trend could also change to bullish.

However, as there is a bullish gap, they tend to be closed. Also, breakouts like this might lead to a retest of the broken trend line. 

Therefore, the first intraday support appears to be in the 1,925 USD area, followed by another demand zone near 1,905 USD, and the crucial level to watch is once again at 1,900 USD.

Alternatively, if the bullion continues to rally, the next resistance could be in the 1,930 USD region, where October highs are located. The next immediate target for bulls should be at November highs of 1,960 USD. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.