Gold Price Prediction – Seasonal Gold Rallies in January; 2020 has been a solid year

Gold prices ended 2020 on a positive note, rising slightly and testing resistance levels. For the year, gold prices rose almost 23%. Throughout 2020, gold has seen its ups and downs, including trading in tandem with riskier assets, as well as losing some of its safe haven status to Bitcoin. Despite the ups and downs, the yellow metal is outperforming and should continue to experience bullish momentum in 2021. Gold generally outperforms in January. Over the past 5 years, gold prices have risen 100% of the time for an average gain of 5%. Over the past 10 years, gold prices are higher 70% of the time for an average growth of 3.2%. There is an impulse that can drive gold in January. On January 5, the special election to George will be held. If the 2 Democrats win, the Senate will be held by the Democrats, and it’s hard to believe this is already factored into the markets.

Technical analysis

Gold prices rose on Thursday and prices are about to test resistance near a downtrend line approaching 1902. Support on the yellow metal is seen near the moving average 10-day to 1879. The 10-day moving average recently broke the 50-day moving average, meaning that a short-term uptrend is now in place. Short-term momentum is positive as Rapid Stochastic continues to rise. Prices are almost overbought as the Fast Stochastic shows a reading of 79.97, just below the overbought trigger level of 80. The medium term momentum is positive as the MACD (Moving Average Convergence Divergence) histogram s ‘prints in positive territory with an upward sloping trajectory indicating higher prices.