Gold Price Forecast – Ascending Triangle Pattern in Play, Sell Limit in Place!

On the bearish side, the continuous US-Iran jitters and tussles between Saudi Arabia and Tehran keep challenging the upbeat market mood, which helps the safe-haven-metal to limit deeper losses. In addition, the broad-based U.S. dollar’s bearish bias also played its major role in helping the gold prices as they are inversely related to the price of the U.S. dollar. As of writing, the GOLD is currently trading at 1,791.53 and consolidating in the range between 1,790.92 and 1,793.34.Despite the geopolitical tensions, the market trading sentiment managed to extend its overnight positive performance. It drew some further bids on the day amid renewed optimism over the U.S. economic recovery. Therefore, the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the bullion prices lower.

At the USD front, the broad-based U.S. dollar failed to extend its previous day’s bullish bias and dropped on the day as demand for the safe-haven assets declined amid optimism over the U.S. economic recovery. Furthermore, the losses in the U.S. dollar could also be tied to the optimism over the rollout of vaccines for the highly infectious coronavirus disease.

Conversely, the mounting worries over the resurgence of the coronavirus pandemic, as well as U.S. Secretary of State Antony Blinken’s willingness to tap Beijing keep questioning the market’s upbeat trading mood. Moreover, the failure of the US-Iran nuclear discussions also gaining market attention. This, in turn, added questions around the market trading sentiment, which becomes the critical factor that kept the lid on any additional losses in the safe-haven metal prices. In the absence of significant data/events on the day, the market traders will keep their eyes on U.S. Factory Orders data later. Apart from this, the virus and stimulus headlines will also be key to watch for fresh direction.