- Gold caught some aggressive bids in the last hour and surged past the $1720-22 supply zone.
- The set-up supports prospects for a move towards multi-year tops, around the $1748 region.
Gold finally broke out of its daily consolidative trading range and spiked to three-week tops, beyond the $1730 level. A convincing break through the $1720-22 supply zone was seen as a key trigger for bullish traders and the latest leg of a sudden spike in the last hour.
The mentioned hurdle marked a multi-week-old descending trend-line, which constituted towards the formation of a symmetrical triangle on the daily chart. A convincing break through an important barrier might have already shifted the near-term bias back in favour of bullish traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and further add credence to the constructive outlook. The set-up now supports prospects for a further near-term appreciating move, back towards retesting multi-year tops, around the $1748 region.
On the flip side, any pullback might now be seen as a buying opportunity and help limit the downside near the trend-line resistance breakpoint, around the $1722-20 zone. This is closely followed by the $1715 horizontal level and should now act a strong base for the commodity.
Gold daily chart
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Techical levels to watch
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