Gold Price News and Forecast: XAU/USD to rally towards $2300 in 2021
|Gold Price Analysis: XAU/USD survives above $1,800, still in danger – Confluence Detector
Gold has been ablle to hold onto $1,800, showing its resilience in weathering immense selling pressure. The precious metal has come under pressure amid a risk-on mood favoring stocks. Markets have now taken a breather, allowing the XAU/USD to bounce to higher ground.
However, gold is still not out of the woods as the charts are pointing to further downside.
The Technical Confluences Indicator is showing that XAU/USD faces some resistance at $1,811, which is the convergence of the Fibonacci 23.6% one-day, the previous 4h and the Simple Moving Average 10-15m. Read more...
Gold to rally towards $2300 in 2021 – CIBC
This year has been a roller coaster for gold, starting the year at the $1550/oz, dipping to a low of $1450/oz in late March on initial pandemic deleveraging and peaking in August at $2050/oz. Yet, undeniable, the overall trend is still up, 15% from the beginning of the year and strategists at CIBC are forecasting an even stronger performance in 2021 to $2300/oz.
Key quotes: "Governments are under pressure to continue pumping money into the system to fend off further balance sheet pressures. We have yet to see the long-term fallout for the stimulus to date and yet more stimulus is expected. The markets have been buoyed by the recent news of a vaccine, with some market participant expecting a return to more conservative fiscal spending by governments and Central Banks in 2021. This may be premature, as economic risk and uncertainty is far from over, given that globally we are in the midst of second wave, and what will be a 15-18 month global slowdown of the world economy will have longer-term effects." Read more...
Gold: Technical setups remain in favor of sellers
Gold (XAU/USD) is holding onto the critical $1800 support so far this Wednesday after tumbling toward this level on Tuesday. The short-term outlook for the yellow metal remains bearish, as depicted by the technical charts on different timeframes. Therefore, XAU/USD risks further falls below the $1798 200-DMA, FXStreet's Dhwani Mehta briefs.
Key quotes: "The yellow metal is set to extend the bearish momentum, in response to the shift in the market's perception towards the riskier assets. Attention turns towards a batch of critical US economic data and FOMC minutes due on the cards later in the day for fresh cues." Read more...
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