Gold Price Analysis: XAU/USD breaks out of the current chart formation it is up to the bulls to keep the momentum going
Gold has moved out of a sticky zone between USD 1940 and USD 1915 per troy once to break the downward sloping trendline marked in black. Now above the current price level, there are two key zones for the bulls to break if the all-time high is to be tested once again.
The purple box on the chart represents the bottom and top of the next resistance zone. The bottom of the area is at USD 1992.42 per ounce and the top is at USD 2016.55 per ounce. Obviously in the middle of these levels lies the USD 2K per ounce psychological level.
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Gold triangle looks set to be breached
As stated several times in our recent videos, gold triggers the attention despite its consolidation due to the formation of a triangle since the beginning of August. After the record flows during 2020 that boosted Gold and most of the commodity and commodity related assets to record highs, the precious metal has entered a ranging market in the past 4 weeks.
Despite the correction in August the longterm sentiment remains strong with big banks forecasting that due to Gold’s relation with inflation, it could reach $3,000 within 2021.
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