Gold consolidation provides long opportunities
Gold is trading within a symmetrical triangle formation this week, with the price essentially retracing since Monday’s gap higher at the open. Even if we break lower from this triangle, the key here is whether we see the price remain above the $1241 support level. Should that occur, another leg higher would seem likely.
It is worth noting that the price remains close to the $1264 resistance level, which, if broken, would lead to a bullish medium term outlook to match the shorter term uptrend. An hourly close below $1241 would spark a strong chance of a period of weakness for gold.