Gold price is building onto Wednesday’s recovery in the lead-up to the European Central Bank (ECB) decision and the US Q3 GDP release. In the view of FXStreet’s Dhwani Mehta, risks appear skewed to the upside for XAU/USD.
Gold teases descending triangle on the 4H chart
“Investors turn cautious and seek shelter in the traditional safe-haven gold, awaiting the ECB outcome for clues on whether they would consider tightening monetary policy earlier than thought.”
“The US Q3 growth figures will provide fresh signs on economic recovery, with the country likely to grow 2.7% QoQ vs. a 6.7% jump seen previously.”
“Gold’s four-hour chart shows that the price has been teasing a descending triangle breakout, with a candlestick closing above the falling trendline resistance at $1803 awaited. If the upside breakout from the triangle materializes, then a fresh advance towards the weekly highs of $1810 cannot be ruled out. The next goal for gold bulls remains the pattern target measured at $1835, where the September month highs coincide.”
“The 21-Simple Moving Average (SMA) at $1798 will be the immediate cushion, below which the daily lows of $1794 could get retested. A sharp drop towards the bullish 50-SMA at $1787 will be on the cards if the latter caves in.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.