Gold Price Analysis: Jumps 0.8%, confirming wedge breakout
- Breakout seen on gold's hourly chart suggests scope for an extension on the ongoing recovery.
- The broader outlook looks negative with the weekly chart indicator reporting a bearish pattern.
Gold is currently trading at $1,483 per Oz, representing a 0.8% gain on the day.
The hourly chart is now reporting a falling wedge breakout, a bullish reversal pattern. The hourly relative strength index has broken out of a two-day long sideways channel, validating the breakout on the price chart.
The yellow metal could rise to challenge the immediate resistance near $1,495, which is breached, would expose the psychological hurdle of $1,500.
On the downside, key support is located at $1,545-$1,451. A violation there would imply a continuation of the broader decline from recent highs above $1,700.
The weekly chart RSI is reporting a head-and-shoulders breakdown. As a result, an uptick to $1,495 or $1,500, if any, could be short-lived.
Trend: Intraday bullish