Gold Price Analysis: Probes pennant resistance

• Gold pushed against the top end of the multi-week pennant pattern. 
• A breakout would signal a revival of the bull run from November lows. 

Gold tested key resistance a few minutes ago, which, if breached, could accelerate the broader uptrend that has been in place since November. 

The yellow metal ran into $1,584 – the top end of the pennant pattern (series of lower highs and higher lows) created over the last 6 weeks. 

A pennant breakout would be confirmed if prices close Monday above $1,584, signaling a continuation of the rally from the Nov. 26 low of $1,463 and open the doors for a test and possible break above the recent high of $1,611. 

Alternatively, if the yellow metal dives out of the narrowing price range, the sellers would regain control and could push the shiny metal down to $1,536 (pennant low), under which major support is seen at $1,500.

At press time, an ounce of gold is changing hands at $1,582. 

Daily chart

Trend: Neutral

Technical levels