Gold Market Analysis: Uncertainty Looms as Volatility Remains Low
As gold continues to consolidate in a tight range for 10 days, investors are closely watching for a potential dip to test support levels. The recent minor swing low of 2,471, along with the 20-Day MA at 2,474, are key levels to monitor, along with the top line of the symmetrical triangle pattern. If the top of the triangle fails to hold as support, a test of the lower 50-Day MA at 2,421 may be on the horizon, along with an internal uptrend line.
Gold Breakout: Waiting for Follow-Through
Two weeks ago, gold triggered a breakout of a symmetrical triangle pattern, reaching new record highs. However, with volatility diminishing and a 10-Day price range from 2,471 to 2,532, investors are waiting for follow-through to confirm the bullish momentum. Another pullback lower may be in store if momentum fails to return soon.
Inside Week Signals Potential Upside Breakout
This week, gold reached a high of 2,529, setting the stage for a potential upside breakout. An inside week suggests consolidation, with gold poised to end the month above the halfway point of the month’s trading range. While not a strong bullish indication, the setup is still favorable for potential upside movement.
Bullish Outlook Above 2,532
A rally above the August high of 2,532 will signal a continuation of the bull trend in gold. Initial upside targets are set at 2,566, with further targets at 2,595 and 2,604. Resistance levels may be encountered along the way, but a strong bullish momentum could push gold even higher towards these targets.
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