FXStreet notes that gold’s decline to 1765 in late November completed a corrective phase. With that, gold resumed its bullish underlying trend. To express his bullish view, Benjamin Wong, Strategist at DBS Bank, enters a tactical long at 1911 with an add-on at 1868. 

“Since mid-2019, gold has been paying attention to the support offered by the 50-week moving average. Gold’s drop to 1765 held right into that moving average support. A point to note is that this support is now higher at 1794, and together with 1818, they should offer formidable support should any decline come forth.”

The mid-November high at 1965 (with follow-on resistance at 1973) would be the next key technical level to monitor. A sustained thrust over this would be key to pull gold to test the major resistance at 1992, and thereafter see a rebuild the tactical case for a journey back towards 2080.”

“Gold had a price gap up on its first trading day of the year; we would go long on a potential 1905 gap fill at 1911. If you notice during the later part of December, gold held firmly into the 1850s dips. We would double up our 1910 tactical long at 1868 (100-day moving average), with an invalidation point at 1815.”