Gold Price Analysis: XAU/USD's love affair with bullish trendline continues
- Gold trades around a multi-month bullish trendline for the ninth straight day.
- The Sept. 8 low is now the level to beat for the bears.
Gold is flirting with a six-month-rising trendline for the ninth consecutive trading day.
At press time, the metal is trading just short of the ascending trendline at $1,956. The safe-haven metal hit a low of $1,906.80 on Sept. 8 and rose to a high of $1,972 on Tuesday.
However, throughout the recovery rally, the bulls have persistently struggled to establish a foothold above the trendline hurdle. Meanwhile, bears have had a tough capitalizing on the occasional bull failure at the trendline hurdle. For instance, the ascending trendline was breached on Sept. 8 and Sept. 11. However, on both occasions, the follow-through was bullish.
As such, the trendline is no longer relevant for technical traders, and key levels to watch out for are the Sept. 15 high of $1,972 and Sept. 8 low of $1,906.80.
A close above $1,972 would invalidate the bearish lower highs on the daily chart and signal a broader bull trend revival. Alternatively, a close below $1,906 would imply a bearish reversal.
Daily chart
Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
