Gold Price Analysis: XAU/USD ends 2020 hovering near $1900, with a 22% gain

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  • Gold have the best year since 2010, rising $350 or 22%.
  • XAU/USD continues to test the $1900 area, a critical short-term resistance.

Gold is about to end the year with a bullish bias, testing the $1900 barrier, supported by a US dollar decline. It gained 22% over the year and hit a record high at $2075 back in August. It then pulled back, hitting levels under $1800.

The rally of XAU/USD from the November low near $1760 faces a strong resistance at $1900. A break above could open the doors to more gain. The daily chart points to the upside in gold, but while below $1900, gains are seen as limited. A slide under $1875 would weaken the outlook.

In December, the metal rose more than 6% after falling during the previous four months on a correction from record-high levels. It resumed the upside and consolidated 2020 gains. It is the best year for gold since 2010.

Other metals also have a great year, with silver gaining more than 45%, Palladium by 20%, and Platinum by 11%.

Technical levels

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