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  • Gold is trading 0.38% higher on Tuesday but failed to break USD 2K per ounce.
  • The price recently broke a triangle chart formation and still looks bullish.

Gold 4-hour chart

Gold has been pushing higher once again on Tuesday following on from gains seen on Monday. The price of the yellow metal has been positive since Fed Chair Powell confirmed the FOMC will switch to an average inflation target along with targeted employment levels. There has been some interesting data today as PMI’s from around the world have been released. The EU numbers were slightly softer than expectations but the US ISM figure beat analyst estimates of 54.5 to print at 56.0 which is a positive sign. 

Looking at the chart, the key target for the bulls is the USD 2015.65 per ounce resistance zone. Although a break of the USD 2K per ounce level would be good the main level is the aforementioned previous wave high. Now the price has failed to test the resistance the next best support is holding at the red line close to USD 1960.00 per troy ounce. If this level breaks then the top of the triangle chart formation could be next up on the support side. 

The indicators are still looking bullish at present. The MACD histogram is green and the signal lines are above the midpoint. The Relative Strength Index is above 50 but has just pulled away from best levels. 

Overall the trend is still up but this consolidation is looking slightly strong than some had expected. If the USD 2015 per ounce level is broken then a test of the recent high at USD 2075.32 could be on the cards. 

Gold Technical Analysis

Additional levels

 

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