Bulls need to defend the $1,535 level: gold price technical analysis
Gold price technical analysis indicates that buyers need to rally price above $1,574 level to increase bullish bets towards the yellow-metal this week.
Much to the surprise of gold bulls, the yellow metal came under downside pressure last week, as a steep rise in risk on trading sentiment caused traders to sell safe-haven asset classes.
Gold price technical analysis shows that the bullish case for the metal is still intact if buyers can continue to defend the $1,535 level.
Gold medium-term price trend
Gold prices slipped to a low of $1,546 last week, as investors’ fears over the spread of the coronavirus started to subside.
The move lower was in stark contrast to the week before, when the price of gold looked as if it could start to rally above the $1,600 level.
Gold technical analysis over the medium term shows that bulls need to defend the $1,535 level to avoid a deeper decline towards the $1,500 level.
A bullish inverted head-and-shoulders pattern still remains valid on the daily time frame as long as buyers defend the $1,535 level.
Furthermore, a bullish double-bottom pattern has formed on the daily time frame, which is usually a bullish technical sign.
Key resistance is now found at the $1,610 and $1,645 levels.
Gold short-term price trend
Gold technical analysis shows that the yellow metal is bullish over the short term while trading above the $1,550 support level.
A bearish wedge pattern breakout occured on the lower time frames last week, causing short-term traders to sell gold towards the $1,545 area.
The $1,574 level remains a key short-term pivot this week, as it marks the bearish breakout area from the wedge pattern.
A move back inside the wedge could cause short-term gold bulls to test back towards the current monthly trading high.
Overall, as long as traders maintain gold above the 200-period moving average on the four-hour time frame, at $1,550, the yellow metal should continue to attract dip-buyers.
Gold technical summary
Gold technical analysis indicates that gold bulls are still in control while price holds above the $1,546 to $1,550 technical region. A bullish double-bottom also formed last week.