Remember that gold symmetrical triangle we were watching a while back? The precious metal bounce off support and looks ready to test the top again. Will we see a breakout this time?
Or will we see another move back to support?
Check out these inflection points I’m watching on the 4-hour time frame!
Gold (XAU/USD): 4-hour
Gold (XAU/USD) 4-hour Chart by TradingView
Geopolitical tensions between China and Japan, along with a stock market slump on AI valuation concerns, led to a surge in safe-haven flows for gold last week.
To top it off, a return in dovish Fed expectations thanks to FOMC officials’ remarks, weighed on the U.S. dollar and brought XAU/USD closer to its triangle top.
Where could the precious metal be headed next?
Gold has just climbed past R1 ($4,132.66) on its way to test the symmetrical triangle resistance close to R2 ($4,200.32) and a major psychological mark.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Keep your eyes peeled for reversal candlesticks at this ceiling which could suggest that another bounce is in order, potentially taking price back down to the pivot point level ($4,065.32) near support.
On the other hand, long green candlesticks piercing through the triangle top could suggest that a bullish break is in order, potentially lifting gold up to R3 ($4,267.66) then R4 ($4,335.01) next.
Don’t forget that volatility is likely to pick up ahead of the Thanksgiving holidays, so stay on your toes for sharp swings as well!
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.