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MTrading Team • 2024-03-27

Bullish pennant keeps Gold buyers hopeful despite latest inaction

Bullish pennant keeps Gold buyers hopeful despite latest inaction

Gold price remains lackluster within a three-week-old trading range, struggling to extend the weekly rebound by the press time. However, a gradually firming RSI (14) line joins the bullish MACD signals and a one-week-long bull pennant to keep the XAUUSD buyers hopeful. That said, the aforementioned trading range’s top surrounding $2,188 guards the immediate upside of the bullion ahead of the stated pennant’s peak of near $2,195, quickly followed by the $2,200 threshold. In a case where the precious metal remains firmer past $2,200, the odds of witnessing a new all-time high, currently around $2,222, can’t be ruled out. In that case, $2,265 could gain the buyer’s attention ahead of the $2,300 round figure.

Alternatively, a downside break of $2,165 will defy the bullish pennant chart formation and could quickly fetch the Gold price toward the previously mentioned trading range’s bottom of near $2,146-42. In a case where the XAUUSD drops beneath the $2,142 support, an ascending support line stretched from mid-February, close to the $2,100 psychological magnet at the latest, will be crucial to watch. Should the bullion remain weak past $2,100, the late December 2023 peak surrounding $2,090 will be the last defense of the Gold buyers before giving control to the sellers.

Overall, Gold price remains bullish unless breaking $2,090 support even if the upside room appears limited ahead of the key US data, namely the US GDP and Core PCE Price Index.

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