Gold prices settled higher on Monday with decent gains to trade around one-year high. The precious metal trades lower on Tuesday morning ahead of Jackson Hole meeting starts on Thursday. In addition, traders pay attention to the geopolitical concerns that continue to hold demand for gold.
Technical Outlook
Short Term View
Gold market has formed “Head and shoulder Chart pattern”. The current trend may reverse towards $1283-1272 levels. As for this pattern, it is more likely that this prices will be under selling pressure. A break below the $1290 level could push prices towards $1283-1272 level.
Long-term View
Gold prices hit just below $1300 but couldn’t sustain around this area and finally closed lower. This indicate the Triple top reversal pattern which usually leads to downside pressure.
On the Gold 4H chart, prices have formed “Ascending broadening wedge” and continue to rally further on the same direction according to the pattern. A break above and a close of a daily candle will lead towards $1318-1362
On the other hand, if prices could not break above $1300, a downfall can be expected and the next target will be at $1280.