Gold Price Forecast:
- Gold Prices[1] are testing trendline resistance, threatening to breakout of a falling wedge pattern that’s been building for the better part of the past four months.
- Heavy resistance looms 1900-1920, can buyers finally leave it behind?
- While much attention is focused on the US election, the rest of the week brings heavy potential for volatility with Thursday’s FOMC[2] rate decision and Friday’s NFP[3].
- The analysis contained in article relies on price action[4] and chart formations[5]. To learn more about price action or chart patterns, check out our DailyFX Education[6] section.
It’s now almost four months ago that Gold prices had topped-out, which might be hard to believe given just how loud that move had become. While bears were tough to find back in early-August, the backdrop has shifted in the almost four months since as Gold prices have continued to coil in a falling wedge pattern after setting that fresh all-time-high.
As looked at then, Friday August 7th closed with Gold prices showing a bearish engulfing pattern[7]. And, at the time, it merely looked as though this may prelude a quick pullback before continuing higher; but that’s not what ended up playing out as we’re now going on four months of digestion in Gold prices after that exuberant bullish trend drove for the bulk of this summer.
Gold Daily Price Chart
Chart prepared by James Stanley[8]; Gold on Tradingview[9]
As noted a couple of times already, the past few months of digestion in Gold prices has taken on the tone of a falling wedge formation[10]. Such formations will often be approached with the aim
