Why 1650/oz should happen before we surpass 2100 (XAUUSD)
since the notable target of 2070+ has been touched we began a textbook fib channel pullback on the D1/W1/M1 outlook. In these snapshots we see that our final leg is set to be completed before we make our way towards new highs on the metal. At the time of this writing we have had some significant fundamentals and also just this morning a speech from Fed Powell. His stance on our current situation in the pandemic stays closer to the "unsatisfied" side and continues to stress that we are not yet close to our goals for recovery. (this isn't a bad thing!)
this gives us insight that the Dollar still has more room the grow to the upside which is perfect for us.
How will this affect Gold specifically?
well as we see in the last week or so the dollar has begun to modestly climb as optimism rises over economic recovery aswell as vaccine news being very bullish for the Dollar. The 10 Year Yield has also been making significant gains in the last weeks. This accompanied by a vast number of technical confluences comes to show that at a minimum gold should complete the final leg at the 1690 area. But... knowing how the house places entries we should also have a lookout for deeper pushes into lower price ranges before the Metal makes a break of this bullish pullback.
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