Gold technical analysis: $1,550 is the level to beat for bulls

• Gold’s upside has been capped at $1,550 in the last nine days.
• While $1,550 is the level to beat for the bulls, $1,517 is the level to beat for the bears.

Gold is currently trading at $1,543, representing 0.22% losses on the day.

The 4-hour chart shows the yellow metal has failed at least three times in the last nine days to convincingly break above $1,550.

Essentially, the rally has paused around $1,550 and a break above that level is needed for bullish revival. That could happen today as gold’s biggest nemesis, the US Dollar index, is looking south, having charted a big inverted bearish hammer candle on the 4-hour chart.

On the downside, $1,517 is the level to defend for the bulls. Acceptance below that level would confirm the short-term bullish-to-bearish trend change signaled by last week’s bearish inverted hammer and open the doors to $1,480 (Aug. 13 low).

4-hour chart

Trend: Bullish above $1,550

Technical levels