Gold price maintains vitality in the 2020s and flirts with a key resistance

The price of spot gold starts the week and the penultimate trading session of the year with a positive sign and rises about 0.25% to $ 1515 an ounce, driven by the bearish behavior of stock exchanges and the general weakness of the dollar (USD).

The low liquidity for the holiday period seems to exacerbate the falls of the US currency that, at the moment, loses across the board with respect to the G-10. When the dollar gives ground internationally, gold is cheaper in terms of other currencies, which raises its demand and, therefore, its price in the financial markets.

With the movements of the last days, the price of gold is set to close December with a gain of 3.5%, its best month since last August, while outlining an annual revaluation of 18%.

By 2020, it is quite likely that the yellow metal retains a bullish tonic and continues to rise, although its progress would be more moderate compared to what happened in 2019. Some factors that would boost the price of gold in the new year are the following:

• Political uncertainty in the United States over presidential elections.
• The possibility that the world’s leading central banks maintain an ultra-expansive monetary stance.
• The economic slowdown of China.
• The probability that the dollar will initiate a large bearish corrective.

Request the gold forecast below, based on a fundamental and deep technical analysis.

GOLD TECHNICAL ANALYSIS

The price of gold confirmed a bullish pattern of falling wedge last week with the roof breaking in the region of 1477/1483. This event has reinforced the positive signals for the asset, so its price could test the technical resistance in the 1515/1520 $ in the short term. If this land is violated, buyers could take the price towards the next target at $ 1557.

In the event that the resistance in 1515/1520 is respected and there is a bearish turn, a transitory movement to the support in 1483/1477 is not ruled out .

GOLD TECHNICAL GRAPH