Gold Triangle Pattern Breakout – is it Good Time to Go Long?
Arslan Butt • 2 min read
During the Asian trading hours, the safe haven metal prices were flashing green and registered mild gains to 1,687.30, mainly due to continuing economic uncertainty caused by the coronavirus (COVID-19). The markets were calmer in early Asian trading hours after a strong performance in Wall Street with US stocks rebounding from the previous session’s lows. At the time of writing, GOLD is currently trading at 1,687.00 and consolidating in the range between 1,676.50 and 1,687.30.
The yellow metal could not hold its substantial gains from the previous session as gold futures were near 1,657.30 while the Asian stocks were mixed as investors await the release of US jobless data later in the day.
Gold prices rose earlier in the day in expectation of the release of US Federal Reserve’s minutes from its unscheduled meeting on March 15. The minutes indicated anxiety about the virus and the considerable degree of uncertainty. There was a muted reaction to the minutes because they didn’t show anything that hasn’t already been priced in. They just decided to cut the benchmark rate to nearly zero and restart bond buying programs.
It is worth mentioning that some investors expecting a positive note for gold ahead because the virus is expected to peak in the US and the United Kingdom next week. As the United States and Europe are expecting, the next week will be the worst for rise in coronavirus infections.
Daily Support and Resistance
Pivot Point 1648.38
Technically, the precious metal gold still seems bullish around 1,643 support and bearish below 1,653 resistance. Above 1,653, the next resistance can be seen around 1,671, and violation of this level may take prices towards the next resistance level of 1,689. Conversely, the support stays around 1,643, and bearish breakout of this level can open further selling trend until 1,635 and 1,623. Overall, trading bias remains neutral as investors are keeping an eye on COVID-19 and a weaker dollar. Good luck!