Gold bounced around in a triangle consolidation yesterday, within a larger triangle pattern that is moving towards its apex in the next couple of weeks.
We expect the breakout from this triangle to be a major move, though it is unclear at present whether this move will be up or down. Nevertheless, we will position ourselves accordingly on any breakout to gain whether the price moves higher or lower.
Oil appears to be starting a correction after a powerful rally and the dollar seems to be attempting to form a rally as well - these factors are both bearish for gold in the short term.
If gold can break above the 30 Jan high at 1683, we can expect a test of major resistance at 1695-1700. A break of 1660 would suggesty a test of 1650 and possibly a move to the bottom of the downtrend channel at
We expect the breakout from this triangle to be a major move, though it is unclear at present whether this move will be up or down. Nevertheless, we will position ourselves accordingly on any breakout to gain whether the price moves higher or lower.
Oil appears to be starting a correction after a powerful rally and the dollar seems to be attempting to form a rally as well - these factors are both bearish for gold in the short term.
If gold can break above the 30 Jan high at 1683, we can expect a test of major resistance at 1695-1700. A break of 1660 would suggesty a test of 1650 and possibly a move to the bottom of the downtrend channel at