Home Gold Price Analysis: Positive beyond six-week-old falling trendline
FXStreet News

Gold Price Analysis: Positive beyond six-week-old falling trendline

  • Gold takes the bids inside a two-week-old rising trend channel, crosses 61.8% Fibonacci retracement of January month declines.
  • The channel’s support, 50% Fibonacci retracement restrict the short-term downside.
  • Early-month top on the buyer’s radar.

Gold prices take the bids to $1,586.50, +0.35%, during the pre-European session on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Though, the resistance line of the short-term ascending trend channel and the monthly top could restrict the bullion’s further upside.

Should there be a further upside beyond $1,594/95 region, $1,600 could offer an intermediate halt to the run-up towards the yearly top surrounding $1,612.

Meanwhile, the precious metal’s declines below resistance-turn-support and 61.8% Fibonacci retracement, at $1,582, could fetch the quote towards another key support confluence. The same includes the said channel’s lower line and 50% Fibonacci retracement around $1,573/72.

In a case where the bears keep dominating past-$1,572, the return of the $1,545 and the yearly bottom close to $1,536 can’t be ruled out.

Gold four-hour chart

Trend: Bullish

 

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.