What's REALLY happening with the price of Gold?When we refer to the price of gold, we most often refer to the xauusd pair and although it is a fairly accurate representation, the usd component sometimes brings distortions.
So in this analysis we will look at the price of gold vs. other currencies, in an attempt to get an overview of gold as an asset.
XauUsd:
Main Chart
As I argued in my morning analysis about Precious metals, yesterday XauUsd has broken very important 1830 resistance suggesting that the one a half years of correction can be over. For a signal that the long-term trend has resumed, we need a break above 1850 followed by a high above 1880, from there "sky's the limit" with important resistances at 1950 and the ATH at 2070. And, yes, there is a strong possibility of a new ATH in 2022 if Gold manages to pass above 1900.
XauEur:
Here we also have a clear-up trend started in 2018, followed by a correction from the beginning of Aug 2020. XauEur has found strong support at 1430, and from August 2021 is on the rise. We can also argue a double bottom in this case, with the neck-line broken in Nov 2021. This neck-line is tested as support later in November and in December and now "is looking" at 1650 resistance. Once this is broken the next stop could be 1750 ATH.
XauGbp:
Here also, Gold has found a bottom in August 2021, followed by a rise.
A break of resistance in Nov and this resistance has become a strong support
Now the price is slightly above the descending trend line and we can expect growth.
Resistances are clear on the chart at 1400, 1440, and the important one at ATH.
XauAud:
The most bullish from this series is XauAud, with the descending trend line broken in May 2021 and, more importantly, August's spike down giving here a higher low not a confirmation of support.
Now XauAud is slightly under resistance and if it breaks up it can accelerate gains above 2700 where we can see a strong resistance.
Best of luck trading Gold in 2022!
Mihai Iacob
