Home Gold Price Analysis: Nears descending triangle resistance
FXStreet News

Gold Price Analysis: Nears descending triangle resistance

  • Gold has carved out a descending triangle on the daily chart. 
  • The yellow metal is currently trading near the upper end of the triangle. 

Having jumped 0.89% on Monday, gold is now closing on the upper end of the four-week-long descending triangle pattern seen on the daily chart, 

A close above the triangle resistance, currently at $1,970, would imply revival of the broader uptrend and expose the record high of $2,075 reached on Aug. 7. On the way higher, the yellow metal may encounter resistance at $$1,992 (Sept. 1 high) and $2,016 (Aug. 18 high). 

A breakout looks likely as the MACD histogram has charted higher lows, a sign of weakening of downward momentum. 

On the downside, the triangle support at $1,909 is the level to beat for the bears. At press time, gold is trading near $1,955 per ounce. 

Daily chart

Trend: Bullish above $1,970

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.