Since the pandemic hit the supply chains, slowly but surely, commodities such as natural gas and metals have been slowly gaining bullish momentum. We may be able to expect gold to have bullish momentum as well. After the breakout that has recently occured, it seems like we can expect the bulls in the XAU/USD pair to target the $1,820 level. The optimistic mood in the markets, as well as a slowdown in the rise of US rates, make the up moves in the gold market more convincing and more likely.
Here we can see the Gold weekly chart. Gold has been trading relatively sideways with no significant trend. If we look closer, we can see 2 big downwards channels. One possibility is gold following that trend, continuing to trail downwards. However, that is least likely.
We also see a pennant shape where the price seems to react around that slanted support level. A breakout has in fact already occurred but it does not seem to be a strong breakout. We can expect the price to go up in the case where the candle closes above the slanted resistance line.