Gold Price Prediction: XAU on the cusp of a triangle breakout to 2,000

1 month ago 15
43 CBD Solutions
Gold is in the middle of a downtrend as far as the RSI is concerned. XAU/USD has the potential breakout to highs above 2,000.

The world’s precious metal has been trading a lower high and a lower low pattern for the past two days. A descending trendline continues to limit the upside. This week's barrier at 1,966 prematurely paused the well-orchestrated mission to hit highs above $2,000 per ounce.

Rejection at 1,966 sent XAU/USD spiraling into the support between 1,940 -1,935. According to the Relative Strength Index (RSI), gold is likely to continue with Monday's downtrend. If support at 1,935 is shattered, the precious metal could plunge to the primary support range between 1,905 and 1,910.

XAU/USD 15-minutes chart

XAU/USD price chart

The 4-hour chart illustrates the formation of a falling triangle pattern. A breakout above this, the triangle would invalidate the above described bearish scenario. Besides, the price is still trading above the 50 Simple Moving Average. The moving average has functioned as not only worked support in the past but also an inflection point leading to more upside movement in the past. The triangle breakout targets $2,000 per ounce in the near term. Further upside movement could extend as far as 2,100 (new yearly highs).

XAU/USD 4-hour chart

XAU/USD price chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Read Entire Article