GOLD XAUUSD > Analysis > 20th January 2022

And I'm back!

Happy new year and all that stuff. After yesterdays break I thought it was time to post again and get started for the new year. With the break of 1830 I stand with a bullish bias.

Technical:
I broke my analysis into 3 scenarios and highlighted new support and resistance with comments on the chart.

Green - 1st scenario, where it continues to go straight up. I see this as possible with all the hype and inflation issues around the world.
Blue - I think it's not wise not just assume it will continue, even with hype. We could see a pullback after the big jump yesterday, to 1830
Red - Should 1830 fail to break up again we would go straight back to a critical support of 1800.

Personally I am in favor of green an blue. I will look for a buy around 1837. If 1836 breaks down. I will look a quick short to 1830 and buy again. Should 1825 go I will stay only for shorts.


Fundamental:
In favor of bulls -

• United States Inflation = 40 year high
  
• Canada Inflation = 30 year high
  
• United Kingdom inflation = 30 year high
  
• European Union inflation = At record high
  

who's next...

Favor of bear -

• My initial thought is that banks want to hide stress of inflation. However I suspect maybe this is what happened earlier in the month.
  
• Property bust in China may reduce demand for raw commodities