XAU/USD is strongly bullish and is expected to approach and reach new highs soon. It is traded within the bulls' territory, so the $2,000 psychological level is seen as a potential upside target.
Gold has continued to increase ahead of the US presidential election and due to the USD depreciation. The greenback dropped even despite the fact that the Fed maintained its monetary policy steady and the US economic data from last week turned out to be positive.
It remains to be seen what will really happen to USD in the upcoming period as the US Dollar Index is trading around a major support area. Still, the lockdowns caused by the COVID-19 second wave could bring a risk-on rally on gold soon.
XAU/USD Upside Should Continue
XAU/USD could climb higher after the aggressive breakout above the median line (ml) and after its failure to retest it. The immediate target is seen at the R1 ($1,983) level. However, the upper median line (uml) and the $2,000 level could be used as an upside targets as well.
The bullish outlook will remain intact as long as the price of gold stays above the median line (ml) of the ascending pitchfork level. A broader upside movement will be validated after a potential valid breakout above the $2,000 psychological level.
- XAU/USD Trading Conclusion
The breakout above the median line (ml), the new higher high, represented a great long opportunity with a potential target at the $2,000 level. Gold is bullish, so you could still catch the upward movement.
Still, another great long opportunity will be validated by a valid breakout above the upper median line (uml) and above the $2,000 level. The major upside target stands at the $2,075 level.
