Gold price is trading at $1,716 and is pressuring the short-term dynamic resistance. A valid breakout will signal a strong bullish momentum. The price was rejected once again by the near-term downside obstacles, so we may have a buying opportunity soon.
Gold has increased aggressively in yesterday's session, even if the USD dominates the currency market in the short term. The global risk and uncertainty remain at maximum levels, that's why the yellow metal is very attractive, even if the COVID-19 crisis diminishes.
The gold price is still trading within the minor triangle, it has retested the pattern's downside line, the inside sliding parallel line (SL), and the $1,700 psychological level. So, a valid breakout above the triangle's resistance and above the $1,723 previous high will offer a buying opportunity.
As I've said in my previous analyses, R1 ($1,767) level is seen as a first upside target, but the price could be easily attracted by the upper median line (UML) and by the $1,800 level.
- GOLD TRADING RECOMMENDATIONS
Gold is bullish as long as it stays above the $1,700 level and above the inside sliding line (SL) of the ascending pitchfork. A valid upside breakout from the minor triangle and above the $1,723 high will validate a further increase after the current accumulation movement.
You can go long above $1,723, the near-term targets are at R1 ($1,767), at the upper median line (UML), and at the $1,800 level. A further increase towards the R2 ($1,848) and towards $1,900 psychological level will be validated by a valid breakout above the upper median line (UML) of the ascending pitchfork.
A selling opportunity will appear only after a drop and a valid breakdown below the $1,671 level and below Pivot Point ($1,666) level, but this scenario is unlikely to happen after yesterday's increase.
