Gold Price Analysis: Trapped in a falling channel on 1H chart

Gold's hourly chart shows the metal is stuck in a bearish channel.
A break above $1,647 is needed to confirm a bullish breakout.

Omkar Godbole FXStreet Contributor

Gold is flashing green in Asia, but the bias remains bearish with prices still trapped in a falling channel on the hourly chart.

At press time, the yellow metal is trading at $1,642 per Oz, representing 0.45% gains on the day.

While the recovery from the overnight low of $1,625 is encouraging, the metal is yet to challenge the falling channel resistance at $1,647. An hourly close above that level would imply an end of the pullback from recent highs near $1,690 and would shift risk in favor of a rise to $1,660 (a lower high on the hourly chart).

A breakout will likely remain elusive if prices find acceptance under the session low of $1,634. That would validate the bearish reversal pattern seen on the daily chart and could yield deeper declines toward $1,611 (Jan. 8 high).

Hourly chart

Daily chart

Trend: Bearish

Technical levels

1. R3 1692.95
2. R2 1678.44
3. R1 1654.13
PP 1639.62
1. S1 1615.31
2. S2 1600.8
3. S3 1576.49

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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