Gold Price Forecast: XAU/USD has to do more to prove it is ready to soar higher – DBS Bank

Gold is moving ahead into a time cycle change, which is likely to feature a season of change favouring a better outlook. Technically, gold is trapped within a current triangle pattern that requires prices to break and sustain over $1,876, Benjamin Wong, Strategist at DBS Bank, reports.

Looking for more horsepower

“On the Ichimoku weekly, gold is yet over the cloud’s resistance at $1,863 and the 50% Fibonacci retracement of the $2,075-$1,677 range grip at $1,876 to command a complete bullish outlook. Gold needs to garner more horsepower before it can stage the break of the triangle pattern, which means breaking through $1,876 and last June’s $1,916 peak.”

“Gold has so far peaked at $1,848 (retracing 76.4% the mid-November through mid-December drop), and a minor retracement of the 38.2% Fibonacci order can bring it back to $1,812. Below that rests the 50-day moving average (DMA) and 200-DMA confluence at $1,805.”