Gold is consolidating within a positive range after last week’s US inflation data. On the other hand, Bitcoin (BTC) is trying to break the six-month bull flag. Similarly, silver is consolidating below the key USD 32.50 level, indicating price strength. Thursday’s retail sales data will determine the next step in these instruments. As geopolitical and economic uncertainties increase, gold, silver and Bitcoin are expected to continue their rally.
Gold (XAU) Technical Analysis
Gold Day Chart – Descending, Widening Wedge
The gold market traded within a bearish, widening wedge pattern following the release of US CPI data. This bullish pattern emerged after a recovery following the publication of the US CPI. The gold price finds support above the red-dotted trend line on the daily chart. Despite the strong recovery, the index failed to break the $2,663 level on Monday and Tuesday.
However, the overall outlook remains bullish. The RSI is turning higher from the mid-level, indicating the potential for another strong rally in the gold price. A break above the $2,685 level could initiate this rally. The development of the rising channel and rising, widening wedge patterns indicate further upward momentum in the gold market.