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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.