Chart of the day - GOLD (03.01.2023)

Gold set new local highs at the beginning of a new year. Precious metals as a group benefit from weaker USD, although part of the greenback weakness has been erased at the beginning of the European stock market session. Taking a look at GOLD chart at D1 interal, we can see that the price is trading in an ascending wedge pattern. A close of daily candlestick above $1,841.10 would signal an upside breakout from the aforementioned pattern and may herald an upward move towards teh next major resistance zone in the $1,898 area. This zone is marked with 61.8% retracement of the major downward impulse launched in March last year. On the other hand, a pullback from the $1,841.10 area may signal a correction with the lower limit of the pattern serving as the first target for bears.

Source: xStation5