Gold is on track for a 4% decline in 2021, its biggest annual loss since 2015 as a strong post-pandemic economic recovery and persistently high inflation prompted major central banks to tighten monetary settings earlier than anticipated. Nevertheless in the last few sessions we can observe some bullish activity which may be related to the end of year flows.
From a technical looking point of view, the latest local correction stopped at the lower limit of the 1: 1 structure around $ 1790.80, where the current uptrend began. Price also managed to break above the horizontal resistance zone at $ 1,814, which is marked with the previous price reactions, as well as the 50% Fibonacci retracement of the last downward wave launched from mid-November highs. Taking this into account, the continuation of the uptrend is possible provided that the price remains above $ 1814. If such a scenario materializes, the next target for buyers is located at $ 1829.65 and coincides with 61.8% Fibonacci retracement.
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Gold interval H4. Source: xStation5
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