Based on the recent price structure, gold
might be able to test recent yearly high at 1348 or get to a new yearly high at 1360. Take a look at the 1-hour chart. Gold
corrected from 1348 to test price support at 1328. But support at 1327 could not hold, and then gold
dropped to 1320. At 1320, buyers bought on dip and pushed gold
up again to 1327 which was support then became resistance. Gold
broke through 1327 easily and shoot up to 1338. Since yesterday, gold
has been trading in a range which can be spotted as an ascending triangle
pattern. This triangle has the flat line at 1338.
The ascending triangle
is often a continuation pattern. If gold
breaks the flat line or resistance at 1338, gold
can go up to test resistance at 1340-1342 (and likely fill the opening gap on Monday). Price action at 1340-1342 can be important because if gold
breaks through, it can go up to test yearly high at 1348 or make a new high at 1360. Moreover, a calculation of breakout's target from that ascending triangle
pattern also leads to 1360. Fibonacci Extension
suggests minimum target of 1341(61.8%), second target at 1348(100%) and third target at 1360 (161.8%).
On the downside, breakdown under the ascending triangle
can lead gold
to test supports at 1327 or 1320.