Gold Price Analysis: XAU/USD due for a breakout, according to key indicator

Gold remains stuck in a four-week-long descending triangle.
A widely-tracked momentum indicator is teasing a bullish revival.

Omkar Godbole FXStreet Contributor

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish.

The yellow metal has carved out a descending triangle pattern over the past four weeks. The triangle's upper end or resistance is currently located at $1,960, and support is seen at $1,910. Gold is trading at $1,953 per ounce at press time, representing a 0.13% gain on the day.

The daily chart MACD histogram, an indicator used to gauge trend strength and trend reversal, is printing higher lows below the zero line, a sign of weakening of the bearish momentum. Besides, the indicator now looks set to cross into bullish territory above zero.

As such, gold could soon take out the triangle resistance at $1,960. That would open the doors for $2,015 (Aug. 18 high).

Daily chart

Trend: Bullish above $1,960

Technical levels

XAU/USD

Overview
Today last price	1953.27
Today Daily Change	2.72
Today Daily Change %	0.14
Today daily open	1950.55

Trends
Daily SMA20	1945.37
Daily SMA50	1935.06
Daily SMA100	1836.48
Daily SMA200	1714.71

Levels
Previous Daily High	1960.16
Previous Daily Low	1943.09
Previous Weekly High	1973.64
Previous Weekly Low	1932.88
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1953.64
Daily Fibonacci 61.8%	1949.61
Daily Pivot Point S1	1942.37
Daily Pivot Point S2	1934.2
Daily Pivot Point S3	1925.3
Daily Pivot Point R1	1959.44
Daily Pivot Point R2	1968.34
Daily Pivot Point R3	1976.51

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 keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.