Did you miss the opportunity to break the triangle on gold?
I see a potential opportunity to jump on a quick withdrawal!
Take a look at these support areas on the 4-hour chart.
Gold (XAU/USD) 4 hours Chart by TradingView
Remember the descending triangle formation we spotted on gold a while ago?
Well, the precious metal has already broken through the resistance which indicates that the expected rise will be as high as the chart pattern.
However, bulls retreated after receiving reports that the People’s Bank of China refrained from buying gold for another month in a row, sending the XAU/USD pair lower for correction.
Can Fibonacci retracement levels hold as support with US market catalysts this week?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on gold and the US dollar yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
The price is testing the 38.2% Fibonacci level, which seems to have attracted some buying interest, but the larger correction could reach the 50% Fibonacci level near S1 ($2,342.49) or the 61.8% level closer to the previous triangle top.
If any of these levels hold, look for a continued rally to the high of $2,400. The bullish moving average crossover also seems to be on the horizon!
Sustained bullish momentum could lift gold to fresh highs at R1 ($2,416.85) and then R2 ($2,442.09) depending on what Fed Chair Powell says or how the US CPI numbers turn out.
Do you think gold prices can continue to rise this week?