Gold Price Analysis: XAU/USD climbs to $1,750, forming a rising wedge

  • Gold's 15-minute chart shows a rising wedge pattern. 
  • A breakdown would open the doors to a re-test of Tuesday's low. 

Gold's recovery from Tuesday's low of $1,726 to $1,750 has taken the shape of a rising wedge pattern on the 15-minute chart. 

A rising wedge comprises converging trendlines connecting higher highs and higher lows. The converging nature of trendlines is indicative of buyer exhaustion. Hence, a breakdown is considered a sign of trend change and often leads a price drop to the apex or starting point of the wedge. 

At press time, gold is trading at $1,748 per ounce and the support of the rising wedge is located at $1,743. A breakdown, if confirmed, would open the doors to a re-test of $1,726. Alternatively, acceptance above $1,750 would shift the focus to the recent highs near $1,765. 

A bullish scenario looks likely as Tuesday's green candle engulfed the body of Monday's inverted bearish hammer candle, weakening the case for an extended pullback. 

XAU/USD 15-min chart

Trend: Bearish below $1,743

Technical levels

    1. R3 1775.42
    2. R2 1761.72
    3. R1 1753.37
  1. PP 1739.67
    1. S1 1731.32
    2. S2 1717.62
    3. S3 1709.27


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD tests daily lows above 1.1300 amid broad dollar recovery

EUR/USD trades close to 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD drops towards 1.2600 as US dollar rebounds

GBP/USD extends the drop towards 1.2600 amid the broad US dollar comeback. UK Michael Gove pushes to prepare for Brexit, as differences prevail in post-transition talks. BoE’s Bailey to speak later today.


Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI: 200-HMA probes bears above $40.00

WTI stays pressured beyond $40.00 despite multiple bounces off 200-HMA. MACD conditions suggest bears rolling up their sleeves for entry. Bulls will have multiple upside barriers beyond $41.00.

Oil News