The price of gold is rejoicing in new bids above the psychological level of $1,750. As FXStreet’s Dhwani Mehta notes, a bullish flag opens the door towards $1,787.
Bullish flag breakout and bullish transition on the daily chart
“The price of gold finally delivered confirmation of a bullish flag after closing above descending trendline resistance on Thursday, then at $1,737. A break to the upside opens the door to a three-month high of $1,787. Although the bulls will have to break this year’s high near $1,770 first.”
“Adding credence to the bullish potential, the upside-down 21-day moving average (DMA) has breached the slightly bearish 100DMA for upside, confirming a bullish cross.”
“On the downside, a strong cushion is seen at Monday’s low of $1,733, below which the confluence of the 21 and 100 DMA at $1,712 will be challenged. The last line of defense for XAU/USD is seen at the November 10 low of $1,703.”