Gold continues to consolidate in positive territory following last week’s US inflation data. Meanwhile, Bitcoin (BTC) is about to break out of a six-month bull market. Similarly, silver is holding firm below the key level of $32.50, indicating price strength. Thursday’s retail sales data will determine the next move for these products. Gold, silver, and Bitcoin are expected to continue rising amid rising geopolitical and economic uncertainty.
Gold (XAU) Technical Analysis
Gold Daily Chart – Downward Expansion Wedge
Following the release of the US CPI data, the gold market is trading within a downward-expanding wedge pattern. This bullish pattern formed after the rebound triggered after the US CPI announcement. Gold price finds support above the red dot trend line on the daily chart. Despite the strong rebound, the price failed to break out of the $2,663 level on Monday and Tuesday.
However, the overall outlook remains bullish. The RSI has started to move up from a moderate level, suggesting that gold prices could rise strongly again. A break above the $2,685 level could initiate this rally. The development of an ascending channel and an ascending widening wedge pattern indicates further upward momentum for the gold market.
