FX.co ★ Short-term technical analysis on Gold for May 24, 2021

Gold price is trading around $1,880. Trend remains bullish. Price continues to respect each higher low. Price has formed an ascending triangle. Usually such triangle patterns are broken to the upside.

Red lines- ascending triangle pattern

Black line - Bearish divergence

Gold price remains inside the bullish channel. However price has formed an ascending triangle pattern which is very important for the short-term trend. Price has defined through the triangle, key support and resistance levels. The resistance is at $1,890 and the support is at $1,874, As we explained in our previous analysis, with the RSI providing bearish divergence signals, even if price breaks resistance the upside is limited. Also keep in mind that triangles are usually found in the final stages of the movement so traders need to be extra cautious.