- Summary:
- Gold price looks bullish at the current levels as a reversal pattern is in place. A triangle as a continuation pattern points to $1,800 and beyond.
Gold price appears to have formed a bottom recently. While the crude oil price corrected from the highs, dropping over ten dollars in less than a week, gold holds the ground and even broke above a major bearish trendline. Moreover, it formed a triangle as a continuation pattern, and the measured move points to $1,800 and more.
In the summer of 2020, the price of gold reached a new all-time high. For the first time in history, it traded above $2,000, but corrected ever since. In the meantime, the dollar kept falling against its peers, and it appeared that gold was telling us something. What if the price of gold leads the overall market?
If that is the case, the current strength seen on the dollar should diverge from the move in gold. Hence, while the dollar gains currently against the GBP, AUD, or EUR, it should lose ground against gold.
Gold Price Technical Analysis
Bullish traders may want to wait for the gold price to break above the upper trendline of the triangular formation. Such a move opens the gates for $1,800 and beyond. At this point, it is crucial for the price of gold to remain above the bearish trendline seen in red in the chart above. As long as it does so, the $1,800 remains valid, with a stop at the most recent lows.
Gold Price Forecast
