Gold appears poised for an explosive directional breakout, as the short-term trading range for the yellow metal continues to narrow.
Gold price technical analysis shows that a major technical breakout from a symmetrical triangle pattern could take place at any time.
Gold medium-term price trend
Gold moved back towards the best levels of 2020 last week, following a short-lived dip towards the $1,680 level.
Gold technical analysis over the medium term continues to suggest that the yellow metal can push higher while the price remains anchored above the $1,690 level.
The daily time frame continues to show that an inverted head-and-shoulders pattern, with significant upside potential, is still valid.
It is noteworthy that the overall size of the pattern suggests that the price of gold can rally towards the $1,900 level over the medium term.
Another upside failure above the $1,700 level would be bearish for gold this week, and could prompt a drop towards $1,650.
Medium-term dip-buyers may look to enter around this area if bulls fail to make a new monthly and yearly high this week.
Gold short-term price trend
Gold technical analysis shows that the yellow metal has a short-term bullish bias while price trades above the $1,676 level.
A major directional breakout for gold appears to be around the corner, as the price remains trapped with a narrowing symmetrical triangle pattern.
According to the size of the triangle pattern, a powerful breakout will happen once the $1,677 to $1,725 range is broken.
More conservative traders may await a breakout from the mentioned triangle pattern before attempting to play the expected range breakout.
Gold technical summary
Gold technical analysis shows that gold remains trapped within a symmetrical triangle pattern. Bulls still have the upper hand while the price trades above the $1,690 level.