Gold Price Forecast Talking Points:
- Despite the enthralling backdrop around recent moves in Silver[1], Gold prices[2] have been relatively tame and subdued, spending much of the past two weeks in a range.
- Price action has pushed below a support trendline making up a symmetrical triangle, which may put more pressure on recent range support.
- The analysis contained in article relies on price action[3] and chart formations[4]. To learn more about price action or chart patterns, check out our DailyFX Education[5] section.
After an enthralling bullish theme took over in Gold prices last summer, the yellow metal has now spent almost six full months digesting those gains. And more recently, price action has been even quieter, as near-term Gold prices have built into what’s been a rather consistent range.
From the two-hour chart below we can focus in on that dynamic. Support has had a tendency to hold from around the 1825-1836 levels, with each of those prices coming from a Fibonacci study. And resistance has shown from around 1859 up to 1873, again, with each price represented by a Fibonacci level.
Gold Two-Hour Price Chart
Chart prepared by James Stanley[6]; Gold on Tradingview[7]
The outer bounds of this range, 1825.31 support and 1873.01 resistance, are each derived from the June-August major move in Gold. These are the 50 and 61.8% markers from that major move. And taking a step back, there’s another item of digestion that needs to be addressed, and that’s the symmetrical wedge that’s build over the past year. Prices are currently trading below the support side of that formation, although that’s happened previously as of a few weeks ago when
