Gold is set for another important trading week, as the yellow-metal remains on track for a breakout towards the $1,800 level.
Gold price technical analysis shows that bulls need to maintain price above the $1,710 level to keep the upside momentum alive.
Gold medium-term price trend
Gold pulled back from a multi-year trading high last week, as traders booked profits from around the $1,760 technical area.
Gold technical analysis over the medium term shows that further gains towards the $1,950 level still remain possible.
A breakout above the current 2020 trading high this week exposes a technical test of the $1,800 level, and the August 2011 high, around the $1,920 level.
It is noteworthy that if price reaches the $1,920 level then a massive inverted head and shoulders pattern will form, with over $1,000 of upside potential.
Key support this week for gold is found at the $1,724 and $1,1710 level.
Gold short-term price trend
Gold technical analysis shows that the yellow metal has a short-term bullish bias while price trades above the $1,710 level.
Last week a bullish breakout from a symmetrical triangle pattern took place. After reaching the $1,760 area, a pullback, or technical retest, of the breakout took place.
So far bulls have been defending the breakout of the triangle pattern, which is a positive sign in the short-term.
The size of the triangle pattern indicates more upside towards the $1,770 level, and possibly the $1,793 level over the short term.
Overall, watch out for more upside in gold this week while the triangle pattern remains valid.
Gold technical summary
Gold technical analysis shows that gold needs to hold above the $1,724 level this week to continue to encourage strong dip-buying. The $1,800 level is seen as a likely target.