Gold Price Forecast: XAU/USD has to do more to prove it is ready to soar higher – DBS Bank
|Gold is moving ahead into a time cycle change, which is likely to feature a season of change favouring a better outlook. Technically, gold is trapped within a current triangle pattern that requires prices to break and sustain over $1,876, Benjamin Wong, Strategist at DBS Bank, reports.
Looking for more horsepower
“On the Ichimoku weekly, gold is yet over the cloud’s resistance at $1,863 and the 50% Fibonacci retracement of the $2,075-$1,677 range grip at $1,876 to command a complete bullish outlook. Gold needs to garner more horsepower before it can stage the break of the triangle pattern, which means breaking through $1,876 and last June’s $1,916 peak.”
“Gold has so far peaked at $1,848 (retracing 76.4% the mid-November through mid-December drop), and a minor retracement of the 38.2% Fibonacci order can bring it back to $1,812. Below that rests the 50-day moving average (DMA) and 200-DMA confluence at $1,805.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.