- Gold remains stuck in a four-week-long descending triangle.
- A widely-tracked momentum indicator is teasing a bullish revival.
Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish.
The yellow metal has carved out a descending triangle pattern over the past four weeks. The triangle's upper end or resistance is currently located at $1,960, and support is seen at $1,910. Gold is trading at $1,953 per ounce at press time, representing a 0.13% gain on the day.
The daily chart MACD histogram, an indicator used to gauge trend strength and trend reversal, is printing higher lows below the zero line, a sign of weakening of the bearish momentum. Besides, the indicator now looks set to cross into bullish territory above zero.
As such, gold could soon take out the triangle resistance at $1,960. That would open the doors for $2,015 (Aug. 18 high).
Daily chart
Trend: Bullish above $1,960
Technical levels
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