Gold Price Outlook: XAU/USD Ready To Run - But Which Way?

GOLD DAILY PRICE CHART

Gold Daily Price Chart

Chart prepared by James Stanley; Gold on Tradingview

Going back to a longer-term view, and there’s still scope for strength even after four-plus months of digestion. As a matter of fact, last year brought upon a similar theme, with near-term Gold prices topping out in August and then digesting into the second-half of December. Bullish Gold was my ‘Top Trade of the Year’ and as we move into 2021, many of the same facts remain with expectations for Central Banks to remain loose and passive.

We’ll hear more from the Fed on Wednesday as the bank updates their dot plot matrix, providing updated commentary on GDP and inflation projections for the first time since Covid vaccine news began to circulate. These all point to longer-term, big-picture themes and this is likely what will be needed to get Gold bulls back in the driver’s seat of the bid behind Gold prices.

GOLD WEEKLY PRICE CHART

Gold Weekly Price Chart

Chart prepared by James Stanley; Gold on Tradingview

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