Investing.com investing.com 06 Jan, 2021 20:15 am

Gold Testing Key Support

Gold Testing Key Support
Commodities Analysis by Fawad Razaqzada covering: XAU/USD, XAG/USD, Gold Futures, Silver Futures. Read Fawad Razaqzada's latest article on Investing.com

However, if support at $1,900 breaks on a daily closing basis, then the bulls will need to remain patient and wait for fresh technical bull signals before looking for long opportunities again.In any case, what happens around this $1,900 support level could determine the direction of the trend for the next few days.Gold and silver have dropped sharply today as investors chose to put their money in the racier equity markets instead, owing to speculation that a Democratic sweep in the Senate could usher in further fiscal support for the economy.So, I am still leaning towards the bullish argument and think renewed strength is likely for gold and indeed silver.

In the short-term, if gold is to head back higher and move towards a new record high, it will need to hold this key support area: p As the chart shows, the area around $1,900 was previously resistance and marks the point of origin of the recent breakout.rise), I wouldn’t fight it until I see fresh bullish signals at a later time.

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