Gold price analysis, 31 December 2020

Gold prices continue to trade sideways as the US dollar weakness continues. The declining trendline has been prevailing since Gold reached its peak in August. Since reaching its peak in August, gold continues to trade within confluent zones with price hovering between support and resistance.

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However, it lacked any follow-through near the $1,900 round-figure mark.Despite the two-way price moves, the yellow metal remained well within the last week's broader trading range.The $1,900 round figure mark coincides with the upper boundary of a bearish channel which acts an immediate resistance. Consolidation above could open doorways to next the barrier at $1930.

On the flip side, the recent doji formations highlight indecision. Moreover, after a couple of weeks of strength, there could be a change in direction. If the given levels holds, the price for gold could consolidate inthe range of $1,900 to $1,860 before a clear breakout. The market sentiment remains mixed leading to the rather flat price at the moment.

The material has been provided by InstaForex Company - www.instaforex.com