GOLD continue to move as part of the correction and the formation of a large inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the price of GOLD is 1845 Dollars per Troy Oz. Moving averages indicate a short-term bullish trend. However, prices broke through the area between the signal lines downward, which indicates pressure from the sellers of the asset and a potential continuation of the fall from the current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the 1820 area. Where can we expect a rebound and continued growth in the price of GOLD with a potential target above the level of 1955. The overall target of the model is the area of 2145.
XAU/USD Forecast and GOLD analysis January 12, 2021
An additional signal in favor of raising the XAU/USD quotes will be a test of the support line on the relative strength index (RSI). The second signal will be the completion of the formation of the right “Shoulder” of the model. Cancellation of the growth option for GOLD prices on January 12, 2021 will be a fall and a breakdown of the level of 1775. This will indicate a breakdown of the support area and a continued fall to the area below the level of 1705. Expect to accelerate the growth of XAU/USD quotes with the breakdown of the resistance area and closing of the price above the 1985 level, which will indicate a breakdown of the “Neck” line of the reversal pattern.
XAU/USD Forecast and GOLD analysis January 12, 2021 implies an attempt to test the support area near the level of 1820. Further, the growth of quotations with a target above the level of 1955 will continue. Cancellation of the option to raise GOLD prices will be stronger than the fall in the asset value in the markets and a breakdown of the level 1775. This will indicate a breakdown of the support area. In this case, we should expect a continued decline in the price of GOLD with a potential target below the level of 1705.
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