Gold Finally Escapes From a Triangle Pattern to the Upside

A lot has been written about how gold can protect you against rising inflation and how this asset behaves, when inflation is surging. Probably a lot more was said about how gold is a safe haven asset and can perform better in a risk off mode. The theory wasn’t put into practice though, especially concerning inflation but the past few days gold has been bullish.

The recent rise in the asset’s price is impressive. Gold finally moved to the upside, driven mostly by fear and risk off mode rather than inflation but hey, we have to start with something, don’t we?

The rise is not happening in a totally random place. The price managed to break the crucial horizontal resistance (less crucial in the past weeks though), at around 1830 USD/oz (orange) and then broke the upper line of the symmetric triangle pattern (blue), which gives us a proper, long-term buy signal.

It seems that now we’re in a good place for a small take profit action and a bearish correction as we just met the high from November. It might introduce a small reversal. The long-term sentiment on gold is finally positive and most probably, we will see prices over 1900 really soon.

For a look at all of today’s economic events, check out our economic calendar.