Bullish pattern points to $1,830: gold price technical analysis
Gold price technical analysis indicates that a major breakout is in play while price trades above the $1,630 level. The $1,830 and $2,000 levels are the main upside targets.
Gold is starting to settle in a relatively narrow price range after setting a fresh multi-year high earlier this week, around the $1,700 level.
Gold price technical analysis shows that the metal could surge towards the $1,820 level if bulls can gain strength above the $1,690 level.
Gold medium-term price trend
Gold technical analysis shows that the yellow metal has a bullish medium-term bias while price trades above the $1,490 level.
The daily time frame shows that a breakout from a rising price channel has occurred, with the breakout remaining valid while the price trades above the $1,630 level.
Looking at the size of the rising wedge pattern breakout, gold prices could eventually rally towards the psychological $2,000 resistance level.
With this in mind, traders should be mindful that a major technical breakout on the higher time frames is in play while price trades above the $1,630 level.
Gold short-term price trend
Gold has started to settle below the $1,690 level, after the metal recently spiked to a new 2020 trading high earlier this week.
The yellow metal has failed to hold on to its recent strong bid-tone, as market sentiment stabilises after the broad based sell-off across financial markets earlier this week.
Gold technical analysis over the short term shows that a large inverted head-and-shoulders pattern has formed, with substantial upside potential.
The recent plunge towards the $1,560 level and the subsequent recovery back towards the $1,700 level has created a large inverted head-and-shoulders pattern.
Traders should be mindful that a breakout above the neckline of the bullish pattern around the $1,690 level could trigger a powerful rally towards the $1,830 level.
It is noteworthy that if gold prices reach the $1,830 level, the up move would still fall short of gold’s all-time price high.
Gold technical summary
Gold technical analysis shows that a major bullish breakout has occurred on the higher time frames. The lower time frames also show that a bullish pattern has formed, with the $1,830 level the near-term target.