Gold has pushed through the upper boundary of a contracting triangle formation, marking a continuation of the broader uptrend that has been intact since early in the year. The breakout follows several weeks of compression, with progressively higher lows aligning along a rising trendline, while buyers repeatedly tested the upper diagonal boundary.
The moving averages reinforce the constructive bias: price continues to trade well above both the 50-day SMA and the 200-day SMA, with the 50-day maintaining a strong upward slope. This places the current move firmly within a longer-term bullish structure, and the recent expansion in distance from the 50-day SMA highlights renewed upward momentum following the consolidation phase.
Momentum indicators are also showing early signs of improvement. The MACD lines have begun curling higher after a period of easing, suggesting that downside momentum has faded. RSI has climbed back into the mid-60s, reflecting strengthening buying interest without yet indicating overstretched conditions.
Overall, the breakout from the triangle aligns with the prevailing uptrend and indicates a return of bullish pressure. As always, how price behaves on any retest of the breakout area—or near the rising trendline—may provide additional insight into the durability of this momentum shift.
-MW
The moving averages reinforce the constructive bias: price continues to trade well above both the 50-day SMA and the 200-day SMA, with the 50-day maintaining a strong upward slope. This places the current move firmly within a longer-term bullish structure, and the recent expansion in distance from the 50-day SMA highlights renewed upward momentum following the consolidation phase.
Momentum indicators are also showing early signs of improvement. The MACD lines have begun curling higher after a period of easing, suggesting that downside momentum has faded. RSI has climbed back into the mid-60s, reflecting strengthening buying interest without yet indicating overstretched conditions.
Overall, the breakout from the triangle aligns with the prevailing uptrend and indicates a return of bullish pressure. As always, how price behaves on any retest of the breakout area—or near the rising trendline—may provide additional insight into the durability of this momentum shift.
-MW
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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.