Gold Needs A Daily Close Above $1,825 To Beat Triangle Hurdle

The price of gold is consolidating after volatile trading above the $1,800 level. Experts said that gold (XAU/USD) now needs acceptance above $1,825 to confirm a triangle breakout, FXStreet’s Dhwani Mehta reports.

Risks For Gold Market Remain Tilted To the Upside

Interestingly, the gold bulls require a daily closing above the horizontal trendline resistance that was formed at $1,825 to validate an upside break for the ascending triangle, opening the doors for a retest of the multi-month high at $1,833. Looking further up the market charts, the psychological $1,850 level is expected to come into the picture.

In the scenario that the pullback from higher levels will extend, gold might revisit the previous day’s high at $1,800. Market analysts commented:

“The next critical support awaits at $1,794, which is the confluence of the rising trendline (triangle support line) and the bullish 21-Daily Moving Average (DMA). Daily closing below the latter will confirm the downside break from the triangle, invalidating the bullish thesis.”