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$1,580 level is the key weekly pivot: Gold price technical analysis

By Nathan Batchelor

Gold price technical analysis indicates that the metal could rally towards the $1,650 level if bulls hold price above the $1,580 level.

Traders have remained cautious towards gold in early week trading after the Chinese government announced a series of measures to stabilise its financial markets.

Gold price technical analysis shows bulls need to perform multiple daily price closes above the $1,580 level this week to confirm a major technical breakout from a triangle pattern.

Gold medium-term price trend

Gold failed to overcome the $1,600 level in early week trades as fears over the coronavirus started to slightly subside, while the Chinese government announced a large liquidity injection into its financial markets.

Gold technical analysis over the medium-term highlights that bulls need to hold price above the $1,580 level to confirm a major technical breakout from a triangle pattern.

With this in mind, confirmation of the triangle pattern upside breakout should see gold testing back towards the $1,610 level, and possibly higher.

Failure to hold price above the $1,580 level should see gold price falling back towards the bottom of the triangle around the $1,564 level.

An extended decline towards the $1,564 level should encourage dip-buyers, although risk sentiment will almost certainly determine the direction of travel for gold price this week.

Gold short-term price trend

Gold technical analysis shows that the yellow metal is bullish over the short term while trading above the $1,535 support level.

Recent price action has been fairly choppy, with gold falling sharply from just below the $1,600 level earlier this week.

An ascending triangle pattern may form across the four-hour time frame this week if price reaches the $1,610 level.

As long as price holds above the $1,566 support level the formation of the ascending triangle pattern has a high probability of taking shape.

The upside projection of the pattern suggests that gold could start to rally through to the $1,650 level once the $1,610 level is breached.

Gold technical summary

Gold technical analysis indicates that the metal could continue to rally higher if price starts to close above the $1,580 level on a multi-day basis.

Meta Description

Gold price technical analysis indicates that the metal could rally towards the $1,650 level if bulls hold price above the $1,580 level.

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