Gold Price Analysis: XAU/USD holds past the broken triangle formation at $1972 per ounce
|- Gold trades over half a percent higher on Monday despite thin volume.
- There was a break of the triangle formation on Friday that is still holding.
Gold 4-hour chart
Gold has pushed higher on Monday despite the volume being low due to the UK bank holiday. There have been some slightly bearish comments from Fed officials as Bostic stated the recovery is happening but data is showing signs of slowing. Fed's Clarida did clear up the Fed's stance however as he stated "unemployment rate by Itself and in the absence of inflation will not be a sufficient trigger for a rate hike". If this is confirmed at the September Fed meeting there could be some more upside for gold.
As you can see from the 4-hour chart below there has been a bullish break higher. The price broke out of the triangle formation on Friday and moved lower before moving up on Monday. The previous wave high of USD 1973.24 per ounce is the next resistance and if that level is broken the psychological USD 2k level is next.
The MACD indicator is also looking bullish as the histogram is firmly green. The lagging signal lines are also above the midpoint which is also a bullish sign. The Relative Strength Index is also positive above the 50 area and there is still room for the indicator to move into the overbought zone.
Overall the longer-term trend for gold is still very much bullish. The market is still making higher highs and higher lows on the weekly chart. This seems to be a point of consolidation and a break of USD 2k per ounce would be a good sign the trend might continue to the upside.
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Additional levels
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