Gold Price Forecast: Entering year 2022 with firm bullish potential

Valeria Bednarik FXStreet

XAU/USD Current price: $1,813.58

Stocks are set to close the year near record highs, as US indexes continue to advance.
Position adjustment continues as investors prepare to close their books.
XAU/USD gains bullish traction with an immediate resistance at 1,820.25.

Spot gold is little changed on a daily basis, marginally higher around the 1,813 level. The dollar keeps seesawing between gains and losses without a certain catalyst as investors close their books for 2021. Most financial markets will be closed due to the New Year’s Eve celebration starting in Asia, although US stocks markets will be open while bond markets are due to an early close. Still, no macroeconomic data will be published, and it seems unlikely markets will see some action.

Meanwhile, European indexes closed with modest gains, while Wall Street is also up at the time being. Government bond yields consolidate Thursday gains, with the yield on the 10-year Treasury note currently around 1.53%.

Gold price short-term technical outlook

XAU/USD trimmed the past two-day losses, holding near its recent monthly high of 1,820.25. The daily chart hints at a bullish continuation, as buyers defended the downside around a mildly bullish 200 SMA. The 20 and 100 SMA converge below the longer one, also heading modestly higher. Technical indicators, in the meantime, picked up within positive levels, reflecting an increasing buying interest.

In the near term, and according to the 4-hour chart, gold is neutral-to-bullish. The bright metal has accelerated north after surpassing a directionless 20 SMA, while the Momentum indicator remains directionless within neutral levels. The RSI indicator, on the other hand, heads firmly higher at around 60, also hinting at resurgent buying interest.

Support levels: 1,,803.00 1,789.30 1,778.20 1

Resistance levels: 1,820.25 1,831.10 1,842.00

View Live Chart for the XAU/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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