Gold Price Analysis: Consolidating in a pennant pattern

Gold is trapped in a pennant pattern on the hourly chart.
A breakout would allow a re-test of recent highs above $1,600.

Omkar Godbole FXStreet Contributor

Gold has largely been in a consolidation mode since Monday's early Asian session and is currently sidelined near $1,580.

The hourly chart shows the yellow metal is trapped in a pennant pattern. A bullish breakout would imply a continuation of the rally from the Jan. 24 low of $1,556 and would open the doors to re-test of the 2019 high of $1,611.

On the other hand, the pennant breakdown would allow a drop to the hourly chart support at $1,567.

A pennant breakout looks likely, as the daily chart is reporting bullish conditions.

Hourly chart

Trend: Neutral-to-bullish

Technical levels

XAU/USD

Overview
Today last price	1581.78
Today Daily Change	-0.99
Today Daily Change %	-0.06
Today daily open	1582.77

Trends
Daily SMA20	1554.01
Daily SMA50	1506.94
Daily SMA100	1499.56
Daily SMA200	1445.97

Levels
Previous Daily High	1588.64
Previous Daily Low	1571.59
Previous Weekly High	1575.88
Previous Weekly Low	1546.4
Previous Monthly High	1525.1
Previous Monthly Low	1454.05
Daily Fibonacci 38.2%	1582.13
Daily Fibonacci 61.8%	1578.1
Daily Pivot Point S1	1573.36
Daily Pivot Point S2	1563.95
Daily Pivot Point S3	1556.31
Daily Pivot Point R1	1590.41
Daily Pivot Point R2	1598.05
Daily Pivot Point R3	1607.46

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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