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