After weeks of consolidation following a nosedive back into the 1800 levels, Gold (XAUUSD) has finally made a break out past the 1850 levels and further broke a previous high of 1863. Currently it has also broken above the 200 MA on the 4-hour timeframe.
Should the yellow metal aim to post higher, it will retest the 200 MA, as well as its previous key level. Should it manage to do so successfully, in the upcoming weeks, we may see 1900 levels once again. However, should Gold fail its test of support, we may see a continuation of a downward trend with targets aiming around the 1780 levels.
With Biden’s inauguration on Wednesday, hopes of a fiscal stimulus on the horizon the stabilize the American economy has soared. With the peaceful transition of power, and the government having full control in Congress, this may help stabilize the weakening Dollar.