GOLD, as well as other precious metals, has been trading higher earlier today, in spite of US dollar strengthening. However, gains started to be erased in the afternoon and now gold is trading slightly lower on the day. USD as well as GOLD are expected to experience a volatility spike later today, when Fed announces monetary policy decision at 6:00 pm GMT. Our preview of the event can be found here. Let's take a quick look at GOLD from technical point of view.
Taking a look at GOLD chart at H1 interval, we can see that price has been trading in a descending triangle pattern recently. An attempt was made to break above the upper limit of the pattern today. Price jumped above the downward trendline and tested 200-hour moving average (purple line) in the $2165 per ounce area. However, buyers failed to break above, and a quick reversal followed with price breaking back below the trendline and 50-hour moving average (green line). A bearish candlestick was painted on H1 interval suggesting that there may be more ahead. A key near-term support zone to watch in case declines deepen can be found in the $2,150 area, where the lower limit of triangle pattern and previous price reactions can be found.
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Open account Try demo Download mobile app Download mobile appA textbook range of the breakout from triangle pattern is around $39. An upside breakout would push GOLD to or near all-time highs. If, on the other hand, sellers remain in control and push the price below the lower limit of the pattern, a drop to around $2,111 may follow, which would be the lowest level since March 5, 2024.
Source: xStation5
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