Monday has been a great day for metals so far, with gold trading 2% stronger at around 1,930 USD (an unusual bullish move as of lately), silver soared more than 3%, and copper was 2.4% higher. 

It looks like gold has finally managed to cancel the medium-term downtrend as the bullion jumped above the strong bearish trendline, which has been limiting the upward movement since August. Thus, the short-term outlook now seems bullish, and if the price closes above this trend line on a weekly basis, the medium-term trend could also change to bullish.

However, as there is a bullish gap, they tend to be closed. Also, breakouts like this might lead to a retest of the broken trend line. 

Therefore, the first intraday support appears to be in the 1,925 USD area, followed by another demand zone near 1,905 USD, and the crucial level to watch is once again at 1,900 USD.

Alternatively, if the bullion continues to rally, the next resistance could be in the 1,930 USD region, where October highs are located. The next immediate target for bulls should be at November highs of 1,960 USD. 

Source: https://www.axiory.com/technical-analysis/gold-rockets-higher-as-usd-debasement-continues

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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