Gold managed to perform its second positive weekly price close, as bulls continued to buy into any price dips below $1,950.
Gold price technical analysis shows that buyers need to anchor the price above the $1,965 level to secure further technical buying.
Gold medium-term price trend
Gold sellers recently broke under a critical support technical, placing buyers in an increasingly worrying position.
Gold technical analysis shows that daily price closes above $1,965 are required for further upside advancement. The analysis shows that bears have staged a technical breakout under a triangle pattern around the $1,938 level.
Weakness towards the $1,880, and $1,820 levels remains possible, following the recent bearish breakout.
To the upside, the daily time frame shows that bulls staged a false breakout above a well-defined symmetrical triangle pattern last week.
Going forward, bulls now need to stabilise the price above the triangle pattern to secure fresh medium-term technical buying.
Key upside targets for the yellow metal above the triangle pattern are found at the $1,990, $2,010, and $2,050 levels.
Gold short-term price trend
Gold technical analysis shows that the metal has a short-term bearish bias while the price trades under $1,950. A bearish head-and-shoulders pattern has formed on the lower time frames, following last week’s false breakout above the triangle pattern on the daily time frame.
The four-hour time frame shows that short-term gold bulls need to move the price above $1,970 to invalidate the pattern.
According to the size of the head-and-shoulders pattern, the price of gold could fall towards the $1,890 area over the short term.
Gold technical summary
Gold technical analysis shows that buyers need to force a breakout above the $1,965 to $1,970 levels to encourage technical buying interest.
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