Gold Price Analysis: XAU/USD looks to $1800 once again, with symmetrical triangle in play
- Gold bulls are back in the game amid broad risk-aversion.
- XAU/USD spots a symmetrical triangle breakout on the hourly chart.
- $1800 barrier on buyers’ radars, with bullish RSI.
Gold (XAU/USD) is building onto Tuesday’s rally, benefiting from broad risk-aversion, fuelled by growing coronavirus concerns.
The strength in the US Treasury yields fails to temper the sentiment around the gold buyers, as the technical setup also remains in favor of the optimists.
Gold Price Chart: Hourly
On the one-hour chart, gold is approaching last week’s high at $1784 after confirming a symmetrical triangle break in the last hour.
Impending bull cross on the said time frame also points to a potential move higher. The bullish crossover would get validated once the 21-hourly moving average (HMA) pierces the 50-HMA from below.
The Relative Strength Index (RSI) has turned slightly lower but remains comfortably above the midline, keeping the upside bias intact.
A break above the previous week high could expose the seven-week tops at $1790, above which a test of the $1800 level would be inevitable.
To the downside, an immediate cushion is seen at $1775, the intersection of the 21 and 50-HMAs.
The next significant cap awaits at the triangle support of $1772. Acceptance below the latter would invalidate the bullish breakout, calling for a test of the 100-HMA support at $1769.
Gold: Additional levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
