Technical Analysis: Gold consolidates recent gains inside bullish chart pattern

Technical Analysis: Gold consolidates recent gains inside bullish chart pattern

Gold keeps the previous day's pullback from a multi-day-old resistance line, forming part of the falling wedge bullish chart, while easing to $1,733 during early Friday. However, the metal’s sustained bounce-off 10-day SMA suggests another attempt to confirm the bullish chart formation, by crossing the $1,745 hurdle. Should the bullion remains strong above $1,745, also rise beyond the latest swing high of around $1,755, gold buyers may not hesitate to recover over 11% loss marked during 2021.

Meanwhile, a downside break of the 10-day SMA level, currently around $1,725, will recall the $1,700 on the chart. Though, any further weakness will be tamed by the monthly low of $1,676 and the support line of the wedge, at $1,665 now. Overall, gold sellers seem tiring and await a breakout to send bulls back to trading.

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