Unstoppable breakout: Gold price technical analysis
Gold price technical analysis shows that the metal has performed a major technical breakout. Further gains towards the $1,700 level seem possible.
Gold staged a major upside breakout last week, with the yellow-metal rallying to its highest trading level since February 2013.
Gold price technical analysis shows that the metal could rally towards the $1,665 level before a meaningful technical correction occurs.
Gold medium-term price trend
Gold finally staged a much-awaited directional breakout last week, after the metal consolidated in a narrow price range for much of February.
The yellow-metal appears to be the, as investors worry about the spread of the coronavirus and monetary debasement through ultra-loose fiscal policy.
Gold technical analysis over the medium term shows that the $1,665 level is the next major upside target for bulls before the $1,700 level.
Last weeks triangle pattern breakout on the daily time also ignited a large inverted head and shoulders pattern, with both patterns now close to playing out to their full upside potential
Key upcoming medium-term resistance before gold’s all-time price high, of $1,917, is found at the $1,745 and $1,800 levels.
Gold short-term price trend
Gold technical analysis shows that the yellow-metal could correct back towards the $1,628 level if a minor downside correction occurs.
Price is making bullish daily, weekly, and monthly higher highs at the moment, which is discouraging traders to short the metal.
Once gold eventually finds resistance, from either the $1,665 or $1,700 level, a pullback will more than likely occur.
Untested demand is present around the $1,628 level, which lends this area to a possible retest, alongside last weeks major breakout zone, around $1,610.
Gold technical summary
Gold technical analysis shows that gold is likely to rally towards the $1,665 or $1,700 level before a downside correction occurs. The metal also has the potential to test towards the $1,745 or $1,800 levels over the medium-term.