Gold has been consolidating within a positive range following last week’s US inflation data. On the other hand, Bitcoin (BTC) is attempting to break above a six-month bull flag. Similarly, silver is consolidating below the key level of $32.50, indicating price strength. The retail sales data on Thursday will define the next move in these instruments. As geopolitical and economic uncertainties intensify, gold, silver, and Bitcoin are expected to continue their rally.
Gold (XAU) Technical Analysis
Gold Daily Chart – Descending Broadening Wedge
The gold market has been trading within a descending broadening wedge pattern following the release of the US CPI data. This bullish pattern formed after a rebound triggered after the US CPI release. Gold prices find support above the red-dotted trendline on the daily chart. Despite the strong rebound, it failed to break the $2,663 level on Monday and Tuesday.
However, the overall outlook remains bullish. The RSI is turning upward from the mid-level which suggests the potential for another strong rally in gold prices. A break above the $2,685 level may initiate this rally. The development of the ascending channel and ascending broadening wedge patterns signals further upward momentum in the gold market.