Gold Technical Analysis – 4-Hour Timeframe
In the 4-hour timeframe, gold is oscillating within an ascending channel. As you can see, gold is attempting to break through the resistance level at $2,525 but has not yet succeeded, experiencing a downward correction each time it encounters this area. If it breaks above this resistance level, we can expect gold to rise toward the upper boundary of the ascending channel. Otherwise, the global gold ounce will likely undergo a deeper correction down to the channel’s lower boundary and the supply area at $2,424.
Gold Technical Analysis – 1-Hour Timeframe
The dynamic support and resistance lines for gold, depicted in orange, clearly illustrate the compression of this asset in a triangular formation. A breakout from this compression in either direction will be accompanied by significant momentum. If a breakout occurs to the upside, a rise in gold toward the upper boundary of the 4-hour channel around $2,570 is plausible. Conversely, a break below the demand zone at $2,474 and the upward trendline would make a decline in gold more certain.