Gold prices edged higher on Friday and Monday morning as the U.S dollar plunge continues. The Dollar was trading lower due to investors' disappointment
Gold prices edged higher on Friday and Monday morning as the U.S dollar plunge continues. The Dollar was trading lower due to investors’ disappointment after Janet Yellen failed to disclose details on US monetary policy or balance sheet in a speech at Jackson Hole on Friday.
Technical Outlook
Gold prices trade above $1300 to form a triple top reversal pattern which usually leads to the downside.
Gold 4H Chart
On the Gold 4H chart, prices have formed the “Ascending broadening wedge” and continue to rally on the same direction according to the pattern. Gold has managed to break above resistance trend line at $1300 which will be a triple top and a struggling point. A break above and close of a daily candle will lead towards $1318-1362.
A break below $1290 and a downfall can be expected to next target at $1280. Additional long-term support is on 100-day moving average at $1256.
