Gold Price Forecast: XAU/USD to yield a triangle breakout on dovish Powell’s speech

Gold price is looking to build on Tuesday’s recovery gains above $1,750. Federal Reserve Chair Jerome Powell’s speech is set to hog the limelight. XAU/USD could yield a triangle breakout if Powell backs a dovish pivot, FXStreet’s Dhwani Mehta reports.

XAU/USD eyes triangle breakout on Federal Reserve Chair Powell

“Gold is on the verge of yielding a symmetrical triangle breakout on the four-hour chart. XAU/USD needs a  four-hour candle stick close above the falling trendline resistance at $1,759 to confirm the upside break. If Federal Reserve Chair Jerome Powell backs the dovish pivot, Gold bulls could see the much-needed boost.”

“A fresh upswing toward the $1,770 round figure cannot be ruled out. The next upside target is envisioned at the multi-month highs at $1,787.”

“On the flip side, there is strong support around the $1,750 level, where the 21, 50 and 100-Simple Moving Averages (SMA) converge. A breach of the latter will expose the rising trendline support at $1,745. A sustained move below that support could validate a downside break from the symmetrical triangle, opening floors for deeper declines toward the $1,730 round figure.”