Quick Update on Gold Signal – Ascending Triangle Pattern in Play

Gold has formed an ascending triangle pattern which is providing a strong resistance to gold near $1,206. I can't say when to expect a...

Gold - 4 Hour Chart

Gold prices continue to trade sideways, after rising in the previous session, as the dollar weakened amid easing Sino-U.S. trade anxieties and traders waiting for the U.S. Federal Reserve meeting next week. The higher rate of interest depresses the demand for non-interest yielding assets such as gold and consequently boosts the demand for the dollar. That is why we are seeing a muted behavior of gold despite the safe-haven appeal.

Gold - 4 Hour Chart

Gold – 4 Hour Chart

Gold has formed an ascending triangle pattern which is providing a strong resistance to gold near $1,206. I can’t say when to expect a breakout as the U.S. economy isn’t expected to release any major data today.

Support Resistance
1201.14 1206.61
1198.26 1209.2
1192.8 1214.66
Key Trading Level: 1203.73

Anyhow, the bullish breakout of $1,206 can offer us an opportunity to go long for $1,212. We just closed our earlier buying signal as gold is facing a hard time breaking the $1,206 resistance. The yellow metal can drop to $1,201 and $1,197, if it continues to hold below $1,206.

Good luck and keep following for more updates!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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