Yesterday, gold once again reversed from the resistance level of 3,400 USD. However, a vague "bullish wedge" pattern is forming on the chart...
Gold price has dropped from its two-week high due to profit-taking. The correction was intensified after the United States imposed tariffs on imported gold bars (1 kg), which could disrupt supply from Switzerland and London.
Key supporting factors: Weak U.S. employment data and expectations that the Fed will cut interest rates in September are putting significant pressure on the USD, making gold more attractive to investors seeking a safe-haven asset.
Risk: Short-term volatility ahead of U.S. CPI data next week. However, the underlying bullish momentum remains intact.
The issue with the bullish wedge pattern is that it forms a vague shape. We have an upward movement, but this pattern could easily reverse the local bullish trend due to the difficult resistance zone at 3,390-3,410.
Currently, the lower boundary of the wedge is acting as support. If the price holds above this level, the main scenario remains a bullish move towards the 3,433 to 3,450 USD resistance zone. On the other hand, if the support of the wedge pattern is broken, the price could return to the 3,350 USD level before the bullish trend resumes.
Gold price has dropped from its two-week high due to profit-taking. The correction was intensified after the United States imposed tariffs on imported gold bars (1 kg), which could disrupt supply from Switzerland and London.
Key supporting factors: Weak U.S. employment data and expectations that the Fed will cut interest rates in September are putting significant pressure on the USD, making gold more attractive to investors seeking a safe-haven asset.
Risk: Short-term volatility ahead of U.S. CPI data next week. However, the underlying bullish momentum remains intact.
The issue with the bullish wedge pattern is that it forms a vague shape. We have an upward movement, but this pattern could easily reverse the local bullish trend due to the difficult resistance zone at 3,390-3,410.
Currently, the lower boundary of the wedge is acting as support. If the price holds above this level, the main scenario remains a bullish move towards the 3,433 to 3,450 USD resistance zone. On the other hand, if the support of the wedge pattern is broken, the price could return to the 3,350 USD level before the bullish trend resumes.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.