XAU/USD Charts Generally Bullish

1. XAU/USD Charts Generally Bullish

2. Points To Be Discussed Today:
• Gold Broke Out Hard
• Gold Will Need To Make A Strong Break Lower
• Gold Futures: Further Pullbacks Look Unlikely
• Gold Still Targets $1,877 – I
• Gold Price: Key Levels To Watch
• Gold Technical Overview
• Gold Fundamental Overview

3. Gold Broke Out Hard
• Gold broke out hard to begin the month,
looking like it has passed the first phase of
what could be a macro event from technical
perspective.
• Since the summer of 2020 a broad wedge has
been forming, and while price didn’t wedge
even further towards the apex the pattern
looks good nevertheless.

4. Gold Broke Out Hard - I
• This sets the stage for a big-picture rally as we
close out 2021 and head into a new year. In
the short-term the outlook is also looking
bullish within that broader context.
• The rip from early this month has held well,
with gold moving horizontally.
• This is a positive.

5. Gold Broke Out Hard - II
• A breakout from the consolidation above 1877
is seen as sending gold higher to the June
peak at 1916.
• This could perhaps be a bit of a roadblock and
induce another correction.
• We will have to watch momentum should it
soon get to that point to determine how
impactful that high will be.

6. Gold Will Need To Make A Strong
Break Lower
• On the flip-side, to turn the outlook negative
in the near-term gold will need to make a
strong break lower, but it wouldn’t be long
before significant support around the recent
breakout could stop selling pressure.
• If we see the area around 1834 tested, it may
offer a solid risk/reward entry for would-be
longs.

7. Gold Will Need To Make A Strong
Break Lower - I
• The low of a turn off support could be used
for determining stops on a long position.
• In any event, at the moment the outlook
appears neutral at worst with a couple of
bullish scenarios to think about.
• It will take some flipping of the script before
the outlook turns decisively bearish.

8. Gold Price Weekly Chart

9. Gold Price Daily Chart

10. Gold Futures: Further Pullbacks Look
Unlikely
• CME Group’s advanced figures for gold futures
markets noted open interest rose by just 775
contracts on Thursday after two consecutive
daily builds.
• Volume, instead, went up by around 31.7K
contracts, reversing at the same time two
daily drops in a row.

11. Gold Still Targets $1,877
• Gold prices extended the erratic performance
and closed with losses amidst shrinking open
interest on Thursday.
• Against that, the continuation of the decline
appears not favoured in the very near term,
while the immediate target on the upside
emerges at the so far monthly top at $1,877
per ounce troy (November 16).

12. Gold Still Targets $1,877 - I

13. Gold Price Rebounds
• Gold price rebounds as yields pare gains, DXY
rally could limit the upside.
• Gold bulls remain motivated as long as the key
$1,850 support holds.
• Gold capitalizes on inflation fears, buyers look to
retain control.
• Having failed several attempts to resist above the
$1,870 threshold, gold price continues to hover in
a familiar range above the critical $1,850 support.

14. Gold Price Rebounds - I
• The latest uptick in gold price can be
attributed to a sharp sell-off in the US
Treasury yields, as the risk sentiment sour
amid inflation and coronavirus concerns.
• However, strengthening US economic recovery
calls for earlier Fed’s tightening, boosting the
US dollar, which could limit gold’s upside.

15. Gold Price: Key Levels To Watch
• The Technical Confluences Detector shows that
gold price staged a solid rebound from ahead of
the key $1,850 support, which is the convergence
of the pivot point one-month R2 and SMA10 one-
day.
• If that cap is taken out on a sustained basis, then
gold bears will test minor support at $1,847, the
Fibonacci 38.2% one-week.
• A steep drop towards the pivot point one-day S3
at $1,839 cannot be ruled out should the
abovementioned support fail to hold.

16. Gold Price: Key Levels To Watch - I
• The Fibonacci 61.8% one-week at $1,834 will be
the line in the sand for gold bulls.
• Alternatively, gold buyers need to find a strong
foothold above a dense cluster of resistance
levels around the $1,863-$1,865 region.
• That level is the intersection of the SMA100 one-
hour, Fibonacci 38.2% one-day and SMA10 four-
hour.
• Further up, the previous week’s high of $1,869
will get retested.

17. Here Is How It Looks On The Tool

18. Gold Technical Overview

19. Gold Fundamental Overview
• Having failed several attempts to resist above the
$1,870 threshold, gold price continues to hover in
a familiar range above the critical $1,850 support.
• The latest uptick in gold price can be attributed
to a sharp sell-off in the US Treasury yields, as the
risk sentiment sour amid inflation and
coronavirus concerns.
• However, strengthening US economic recovery
calls for earlier Fed’s tightening, boosting the US
dollar, which could limit gold’s upside.

20. XAU/USD Charts Generally Bullish

21. Thanks for listening
XAU/USD Charts Generally Bullish