FX.co ★ GOLD Extends Its Risk Rally!

Today, the gold price is strongly bullish and it seems ready to escape from a symmetrical triangle. The FOMC meeting brings high volatility into the markets, so gold could resume its upside momentum as the outlook is bullish.

The yellow metal is trading at $1,967 level signaling strong buyers despite Monday's false breakout above the near-term upside obstacles. A dovish FED should boost the gold price which should jump way above the $2,000 psychological level.

I've told you in my previous analysis that a valid breakout from the triangle pattern and above the R1 ($1,969) suggests buying as the price is expected to jump higher. The price challenges the mentioned resistance levels at the time of writing, so a bullish closure above these obstacles could bring more buyers into the game.

The failure to retest the uptrend favors an upside breakout and a bullish continuation. Only another false breakout or a major bearish engulfing could turn the rate to the downside.

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A bullish closure above $1,973, another higher high, confirms further growth and brings a fresh buying signal, opportunity. The immediate target is seen at $2,000 level, right above the R2 ($1,997). Technically, a valid upside breakout from the current symmetrical triangle signals a bullish rally towards the $2,075 all-time high.

I'll repeat myself by saying that we could sell only after a drop and close below $1,900 psychological level.