Gold price is struggling today as investors continue to question its demand as Bitcoin and other cryptocurrencies become more influential. The metal is trading at $1,855, which is slightly below the all-time high of $2,076.
Today, gold is wavering as traders look ahead to the Federal Reserve interest rate decision that will come out tomorrow. While the bank will leave its interest rate and quantitative easing policies unchanged, its statement could have an impact on the gold price and the dollar. Also, the price is reacting to the ongoing uncertainty about US stimulus.
Gold price prediction
A few months ago, I wrote that a long-term gold chart revealed that the metal was forming a cup and handle pattern. At the time, the gold price was trading at $1,700. As it turned out, the price rose and completed its cup part.
Today, as shown in the chart below, we see that gold price has been in consolidation mode. On the monthly chart, this pattern seems like a formation of the handle part of the pattern. Therefore, while the price may remain at the current range for a while, there is a likelihood that the price will break-out above its all-time high in the medium to longer term.
Gold technical chart