Gold Price Analysis: $1,585 is the level to beat for the bulls

Gold is trapped in a narrowing price range on the 4-hour chart.
A breakout would imply a continuation of the broader uptrend.

Omkar Godbole FXStreet Contributor

Gold's stalled rally could pick up the pace above $1,585. That level is currently housing the upper end of the 6.5-week long narrowing price range.

The metal has printed lower highs and higher lows since topping out at $1,611 in early January. That has taken the shape of a narrowing price range or contracting triangle

Acceptance above the upper end would imply a resumption of the uptrend from November lows near $1,455 and could yield a move above the recent high of $1,611.

On the other hand, a range breakdown could cause buyers to exit the market, yielding a deeper drop to $1,520-$1,500.

At press time, the yellow metal is trading at $1,576 per Oz.

4-hour chart

Trend: Neutral

Technical levels

XAU/USD

Overview
Today last price	1576.73
Today Daily Change	0.42
Today Daily Change %	0.03
Today daily open	1576.31

Trends
Daily SMA20	1568.68
Daily SMA50	1534.24
Daily SMA100	1508.35
Daily SMA200	1464.9

Levels
Previous Daily High	1578.34
Previous Daily Low	1565.54
Previous Weekly High	1594.01
Previous Weekly Low	1547.56
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1573.45
Daily Fibonacci 61.8%	1570.43
Daily Pivot Point S1	1568.45
Daily Pivot Point S2	1560.6
Daily Pivot Point S3	1555.65
Daily Pivot Point R1	1581.25
Daily Pivot Point R2	1586.2
Daily Pivot Point R3	1594.05

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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