Gold price bounced from the lows, albeit the move higher is not convincing anyone yet. The problem with gold bulls is that they feel left outside of the recent rally in the commodity markets.
Copper and crude oil rallied the most, but gold lagged. Currently, the price of gold forms a pennant formation, but the price action remains in a declining channel. More precisely, it is struggling at the highs against dynamic resistance and so far is unable to break it.
Gold made a new all-time high last year in the summer, and ever since, it just corrected. It fell below $1,800 while the dollar’s decline continued. Moreover, it was unable to bounce while the Australian dollar continued to outperform. The two, the price of gold and the Australian dollar, are directly correlated, but the correlation appears to be broken lately.
Gold Price Technical Analysis
Bulls do have hope for a move higher should the price of gold break the horizontal triangular pattern. If that is the case, wait for a breakout and a close above the upper trendline of the pennant, considering that this is the 4h timeframe. Next, bulls should place a stop-loss order at the lowest point in the pennant and stay for the measured move around $1,870.
Gold Price Forecast