Gold price technical analysis

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(Kitco News) - The gold price has been increasing in recent sessions and now the price has converged into a chart formation on the 4-hour chart. Looking at the graph below the price has been heading towards the 50% Fibonacci level and this confluences with a previous support (now resistance) at $1732.50/oz. This does not mean the good times are over but there is a level that needs to be taken out.

The pattern is a bear flag wedge-type formation marked by the red lines in the chart. A break of this formation could help forecast the future trajectory of the yellow metal. Ahead of this, the 61.8% Fibonacci retracement zone has been used in the past but this is far off closer to $1762.50/oz.

On the downside, the big support is at $1690.43/oz. This is the consolidation low and a break of the pattern would be needed for the price to move lower. For now, the price is moving higher with higher highs and higher lows and a confirmation of the trend continuation would be a break of the previous wave high at $1735.10/oz.