Key Takeaways
\nGold prices have rallied over the past week and are near record-high levels after a wave of profit-taking in late July.Since a shooting star pattern marked gold\u2019s high in late April, the commodity has consolidated in an ascending triangle, a bullish chart formation that signals a potential continuation of the longer-term uptrend.Investors should watch key overhead areas on spot gold’s chart around $3,435 and $3,735, while also monitoring major support levels near $3,245 and $3,150.<\/p>\n
Gold (XAUUSD<\/a>) prices have rallied over the past week and are near record-high levels<\/a> after a wave of profit-taking in late July.\n<\/p>\n Investors have bid up the precious metal amid uncertainty over the outlook for the U.S. economy and expectations that the Federal Reserve will cut interest rates in September<\/a>, following July\u2019s weaker-than-expected employment report<\/a> released last Friday. Gold tends to benefit from its reputation as a safe-haven asset during times of economic uncertainty, while lower rates also support the non-yielding asset<\/a>. Reports that the U.S. will impose tariffs on imports of gold bars have also underpinned gains this week.\n<\/p>\n The commodity has soared about 30% this year, boosted by concerns over the Trump administration\u2019s unpredictable trade policies\u2014amid uncertainty about how tariffs will affect the economy\u2014and ongoing tensions in the Middle East. Spot gold was trading at just under $3,400 per troy ounce recently.\n<\/p>\n Below, we take a closer look at the spot gold price chart and use technical analysis<\/a> to identify key levels that investors will likely be watching.\n<\/p>\n Bullish Ascending Triangle Takes Shape <\/p>\n Since a shooting star<\/a> pattern marked gold\u2019s high in late April, the commodity has consolidated in an ascending triangle<\/a>, a bullish chart formation that signals a potential continuation<\/a> of the longer-term uptrend.\n<\/p>\n More recently, the price has rallied from the triangle\u2019s lower trendline and reclaimed the respected 50-day moving average (MA)<\/a>, a move that has coincided with the relative strength index<\/a> crossing back into bullish territory.\n<\/p>\n Let\u2019s identify two key overhead areas to watch on gold’s chart if the recent upward momentum continues and also point out major support levels<\/a> worth monitoring during possible retracements<\/a>.\n<\/p>\n Key Overhead Areas to Watch <\/p>\n The first overhead area to watch sits around $3,435. This location on the chart would likely provide significant resistance<\/a> near four distinct peaks<\/a> that form the ascending triangle\u2019s top trendline.\n<\/p>\n Investors can forecast a bullish price target<\/a> above gold\u2019s all-time high<\/a> by using the measured move technique, a tool that analyzes chart patterns<\/a> to project future price movements. When applying this analysis, we calculate the distance of the ascending triangle near its widest section and add that amount to the pattern\u2019s top trendline. For instance, we add $300 to $3,435, which projects a target of $3,735, about 10% above the commodity\u2019s current trading levels.\n<\/p>\n Major Support Levels Worth Monitoring <\/p>\n During retracements, investors should initially monitor how gold\u2019s price responds to the $3,245 level. The metal may find support in this area near a range of corresponding price action<\/a> on the chart between April and June.\n<\/p>\n Finally, a breakdown<\/a> below the ascending triangle\u2019s lower trendline could see the commodity\u2019s price revisit lower support around $3,150. Investors may look to accumulate gold in this region near the April peak, which closely aligns with the completion of a pullback<\/a> to the 50-day MA in mid-May.\n<\/p>\n