Gold Price Prediction – Gold Seasonally Rallies In January; 2020 was a Robust YearGold has rallied 100% of the time in January over the last 5-years
Gold prices finished 2020 on a high note, rising slightly and testing resistance levels. For the year, Gold prices increased by nearly 23%. Throughout 2020 gold had highs and lows, including trading in tandem with riskier assets, as well as losing some of its safe-haven statuses to Bitcoin. Despite the ups and downs, the yellow metal outperforms and should continue to experience upward momentum in 2021. Gold generally outperforms in January. Over the past 5-years, gold prices have rallied 100% of the time for an average gain of 5%. Over the past 10-years, gold prices are higher 70% of the time for average growth of 3.2%. There is an impetus that can drive gold in January. On January 5, the special election in George will take place. If 2-democrats win, the Senate will be held by the democrats, and its hard to believe that this is already priced into the markets.
75% of retail CFD investors lose money
Gold prices moved higher on Thursday, and prices are poised to test resistance near a downward sloping trend line that comes in near 1,902. Support on the yellow metal is seen near the 10-day moving average at 1,879. The 10-day moving average has recently crossed above the 50-day moving average which means that a short-term up trend is now in place. Short-term momentum is positive as the fast stochastic continues to move higher. Prices are nearly overbought as the fast stochastic is printing a reading of 79.97, just below the overbought trigger level of 80. Medium-term momentum is positive as the MACD (moving average convergence divergence) histogram is printing in positive territory with an upward sloping trajectory which points to higher prices.