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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. 

Hourly chart

Weekly chart

Trend: Intraday bullish

Technical levels

 

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