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.
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
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Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
