Gold Price Analysis: Consolidating in a pennant pattern
- Gold is trapped in a pennant pattern on the hourly chart.
- A breakout would allow a re-test of recent highs above $1,600.
Gold has largely been in a consolidation mode since Monday's early Asian session and is currently sidelined near $1,580.
The hourly chart shows the yellow metal is trapped in a pennant pattern. A bullish breakout would imply a continuation of the rally from the Jan. 24 low of $1,556 and would open the doors to re-test of the 2019 high of $1,611.
On the other hand, the pennant breakdown would allow a drop to the hourly chart support at $1,567.
A pennant breakout looks likely, as the daily chart is reporting bullish conditions.