Gold Forming an Ascending Triangle

The bullion was bid today as sentiment worsened, due to the soaring cases of coronavirus patients in China and gold was half a percent stronger during the London session, seen at around 1,575 USD.

The resistance now seems to be at previous swing highs of 1,576 USD. If this level is taken out, gold could surge toward 1,592 USD. 

As long as the price remains above the uptrend line, currently near 1,568 USD, the short-term outlook seems bullish. The next demand zone might be located near previous lows at around 1,562 USD.

Moreover, it looks like an ascending triangle pattern, which is usually a bullish pattern. The potential of this pattern is circa 28 USD, so if this formation will be fully used, gold could attack the psychological level of 1,600 USD.
The bullion should be supported by the still not contained outbreak of coronavirus, and on top of that, the Fed is printing money at a very fast pace, which should also be supportive for gold. 

Tomasz Wisniewski Head of Education