Gold Price Analysis: Probes pennant resistance
Gold tested key resistance a few minutes ago, which, if breached, could accelerate the broader uptrend that has been in place since November. The yellow metal ran into $1,584 – the top end of the pennant pattern (series of lower highs and higher lows) created over the last 6 weeks.
A pennant breakout would be confirmed if prices close Monday above $1,584, signaling a continuation of the rally from the Nov. 26 low of $1,463 and open the doors for a test and possible break above the recent high of $1,611.
Gold: Firm around two-week top beyond $1580 as risk-off continues
Gold prices stay mildly positive, +0.08%, to $1,583.84 during the early Asian session on Monday. The yellow metal remains on the front foot amid the market’s fears emanating from China’s coronavirus. The latest Brexit-negative headlines also contribute to the risk aversion.
Be it more than 300 billion Chinese yuan liquidity infusion or announcing corporate tax cuts and an increase in fiscal spending, the diplomats in China are trying from all corners to placate markets. However, they have been less successful so far.
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