Gold staged a notable recovery last week. President Trump testing positive for Covid-19 caused traders to move into safe-haven asset classes.
Gold price technical analysis shows that a rally towards $1,980 could take place if the $1,920 level is overcome.
Gold medium-term price trend
Gold staged a strong recovery above $1,900 last week, after the yellow metal suffered its worst monthly loss in more than 12 months.
Gold technical analysis shows that the $1,915 level is an important technical barrier that bulls need to overcome this week.
Bulls need to stage multiple daily price closes above gold’s 50-day moving average, around $1,915, to encourage medium-term buying interest.
If bulls overcome the $1,915 area then the $1,925 and $1,945 levels offer the strongest form of technical resistance.
The daily time frame also shows that an important rising trendline, around $1,970, is another viable upside target if the mentioned resistance areas are broken.
Gold short-term price trend
Gold technical analysis shows that the metal only has a short-term bullish bias, while the price trades above $1,907.
Lower time-frame analysis shows that a bullish inverted head-and-shoulders pattern has formed, following the recent recovery from the $1,840 area.
Technical analysis shows that the bullish reversal pattern will be activated if the price moves above the $1,920 resistance level.
According to the size of the bullish pattern, the price of gold could rally towards the $1,970 region over the short term.
Gold technical summary
Gold technical analysis shows that gold could surge towards $1,970 if bulls anchor the price above $1,920.