FX.co ★ Analysis of Gold for December 16,.2020 - Watch for buying opportunities on the dips with upside target at $1.873

Latest data from the Mortgage Bankers Association for the week ending 11 December 2020

Prior -1.2%

• Market index 857.3 vs 848.3 prior
• Purchase index 331.6 vs 325.7 prior
• Refinancing index 4,014.5 vs 3,959.2 prior
• 30-year mortgage rate 2.85% vs 2.90% prior

The jump in mortgage activity in the past week comes from a rebound in purchases after the drop in the previous week, with refinancing activity also seen picking up amid the fall in the long-term mortgage rate to the lowest in the survey's history.

Further Development

Analyzing the current trading chart of Gold, I found that the buyers are in control and that we got pullback into the rising trendline today.

Based on the hourly time-frame I found the bullflag in creation, which is another sign for the upside continuation.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got VIX and Ethanol today and on the bottom CAD and Natural Gas.

Key Levels:

Resistance: $1,873

Support level: $1,853