Gold Price Struggles at Highs, Remains Bid While $1,840

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Written By: Mircea Vasiu
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    Summary:
  • Gold price remains bid while aboe $1,840. A rising wedge threatens the bulls party, but only if the market is strong enough to break lower.

The gold price had a strong comeback from its move below the $1,700 mark. It formed a double bottom there, and the subsequent bounce that followed puts pressure against the $1,900.

The precious metal enthusiasts are even more excited about gold’s performance since the digital assets have lost ground against the US dollar. In April, most cryptocurrencies have lost more than half of their value, following a report from China that it pushes against mining.

Also, inflation fears did help the price of gold on its way up. Inflation in the United States came out more than four times than expected, sending the dollar lower across the dashboard.

Gold has reached a new all-time high above $2,000 last year, but it has corrected back to $1,700, despite the dollar losing ground against its G10 peers. The current move higher is seen as strong enough to put pressure on the previous highs. However, the technical picture indicates a rising wedge pattern, threatening with a reversal.

Gold Price Technical Analysis

From a technical perspective, the gold price remains constructive while above $1,840. That is a key area that, if broken, points to more weakness. A move below the $1,840 indicates that the rising wedge ended, and so bears may want to go short with a stop at the highs and a take profit into the $1,720 area.

Gold Price Forecast

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Written By: Mircea Vasiu

Mircea, MBA in International Business graduating Magna Cum Laudae, trades for a living and contributes to various financial publications for more than six years. He writes about macroeconomics, stock indices, currencies, and most recently ETFs and individual stocks. For the past decade, he’s involved in everything trading related, mostly in the currency market, both with manual and algorithmic trading.

Published by
Written By: Mircea Vasiu