Gold technical analysis: Looking to retest key support before capitalizing on continuation breakout

  • Gold's daily chart shows a pennant breakout.
  • Prices will likely bounce from key support at $1,439, reinforcing the bull view.

Gold is currently trading at $1,443 per Oz, having hit a fresh 2019 high of $1,452.

The yellow metal is trimming gains, possibly due to overbought conditions reported by the hourly and 4-hour chart indicators and the pullback could be extended further to the former resistance-turned-support of $1,439 (June 25 high).

With the 14-day relative strength index of 67.00 signaling a room for the rally, the crucial support at $1,439 will hold, reinforcing the bullish view put forward by the pennant breakout on the daily chart.  

A pennant breakout indicates a resumption of the rally from the May 21 low of $1,261. As a result, $1,500 could come into play over the next few weeks.

The short-term bullish case would be invalidated if prices drop below the June 17 low of $1,400. That could happen if the U.S. Federal Reserve surprises markets by keeping rates unchanged on July 31.

Markets are full-priced for a 25 basis point rate cut.

Daily chart

Trend: Bullish

Pivot point

    1. R3 1491.01
    2. R2 1469.55
    3. R1 1457.87
  1. PP 1436.41
    1. S1 1424.74
    2. S2 1403.28
    3. S3 1391.6


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD surges above 1.1100 as Trump announces steps against China

EUR/USD is trading above 1.1100, up on the day. President Trump said he orders companies to search Chinese imports for drugs. Earlier he criticized Powell's lack of action. 


GBP/USD jumps above 1.2250 on USD weakness

GBP/USD is trading close to the monthly highs above 1.2250 as the US dollar falls following Powell's hint of cutting rates and Trump's angry response. 


USD/JPY plummets to ten-day lows below 106 as Trump goes berserk on Twitter

The USD/JPY came under strong selling pressure in the last hour and erased nearly 100 pips as US President Donald Trump's latest rant on Twitter forced investors to seek refuge and ramped up the demand for safe-haven JPY. 


Gold gains more than $30, eyes 2019 highs on Trump’s tweet

Gold continues to rise sharply amid concerns about the impact of the escalation in the US-China trade war. The demand for safe-haven assets emerged over the last hours, leading to a rally in the yellow metal. 

Gold News

Powell powerless against Trump's trade wars – US braces for recession, USD set to move

"The most powerful central banker in the world" – is how we and others characterize Fed Chair Jerome Powell. While that may be true – monetary policy is reaching its limits – especially in the face of a trade war.

Read more