The price of gold is trading at the $1,932 level and is expected to climb way higher after ignoring the $1,900 psychological level. XAU/USD takes advantage of USDX's further decline and most likely it will approach the $2,000 psychological level soon.
Gold has ended its corrective phase and now is looking to trade higher again. Surprisingly or not, the price continues to increase even if the COVID-19 vaccine campaign has started. Unfortunately, the global risk remains high, so a safe-haven asset as gold continues to be very attractive for traders and investors.
XAU/USD Bullish Reversal Activated!
I've told you in my previous analysis that XAU/USD has printed an Inverse Head & Shoulders pattern signaling that the corrective phase could be over and that the buyers could take full control again.
The price has validated the reversal pattern and now it has escaped from the descending pitchfork's body indicating further growth. The accumulation below the $1,900 has signaled a potential upside breakout.
The aggressive breakout through the $1,900 represented a long signal. The first upside target is seen at the first warning line (WL1). A valid breakout above this line suggests further growth towards the $2,000 level.
The Inverse Head & Shoulders signaled an important upside movement in the upcoming period. The $2,075 all-time high could be used as a target as well.