Gold Price Analysis: Nears descending triangle resistance

Gold has carved out a descending triangle on the daily chart.
The yellow metal is currently trading near the upper end of the triangle.

Omkar Godbole FXStreet Contributor

Having jumped 0.89% on Monday, gold is now closing on the upper end of the four-week-long descending triangle pattern seen on the daily chart,

A close above the triangle resistance, currently at $1,970, would imply revival of the broader uptrend and expose the record high of $2,075 reached on Aug. 7. On the way higher, the yellow metal may encounter resistance at $$1,992 (Sept. 1 high) and $2,016 (Aug. 18 high).

A breakout looks likely as the MACD histogram has charted higher lows, a sign of weakening of downward momentum.

On the downside, the triangle support at $1,909 is the level to beat for the bears. At press time, gold is trading near $1,955 per ounce.

Daily chart

Trend: Bullish above $1,970

Technical levels

XAU/USD

Overview
Today last price	1957.71
Today Daily Change	0.91
Today Daily Change %	0.05
Today daily open	1956.8

Trends
Daily SMA20	1945.93
Daily SMA50	1923.08
Daily SMA100	1826.49
Daily SMA200	1705.03

Levels
Previous Daily High	1962.6
Previous Daily Low	1937.1
Previous Weekly High	1966.54
Previous Weekly Low	1906.62
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1952.86
Daily Fibonacci 61.8%	1946.84
Daily Pivot Point S1	1941.73
Daily Pivot Point S2	1926.67
Daily Pivot Point S3	1916.23
Daily Pivot Point R1	1967.23
Daily Pivot Point R2	1977.67
Daily Pivot Point R3	1992.73

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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