Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Gold Technical Outlook – Can XAU Get into Gear in 2022?

Gold Technical Outlook – Can XAU Get into Gear in 2022?

Gold Forecast
Gold Forecast
Recommended by Paul Robinson
Check out the Q1 Gold Forecast
Get My Guide

Gold hasn’t been real easy to get a feel for during the past 18 months. While there have been tradable short-term swings, you couldn’t extrapolate much out of those swings about the future direction due to shifty momentum conditions.

It’s possible a larger ascending wedge pattern could be developing on the weekly time-frame, and if it is to take to a truer form then it could take a while longer before it fully develops. Another down-swing from here towards big support at 1675 may be in the cards early in the year.

From a risk/reward perspective a drop to major support could offer would-be longs an opportunity to scoop up gold with a line-in-the-sand to lean on. Hold onto support and the outlook is neutral to bullish, break the line then the bias will likely need to be adjusted towards even further downside.

On the top-side to get things headed in a positive direction, gold must first climb above 1817 then 1916. At that juncture, it would appear a rally back to the record highs at 2075, or better, is underway.

All-in-all, gold has become increasingly less interesting since peaking out in the middle of 2020, and on that it looks likely that this is an unsustainable lack of trend and we will see a large move develop in 2022. It just might take a bit more directionless trading first on the weekly chart before we get there.

Gold Weekly Chart

gold weekly chart

Written by Paul Robinson, Strategist

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.