Gold Price Analysis: Pulls back from record high, 1H chart shows failed breakout
An ounce of gold is changing hands near $1,973 at press time. Prices reached a fresh record high of $1,988 during the early Asian session, surpassing the previous lifetime high of $1,984 reached on Friday. Notably, with the rise to fresh record highs, gold had confirmed an ascending channel breakout on the hourly chart. That bullish continuation pattern, however, has failed with the pullback to $1,972.
Gold Weekly Forecast: There are some very interesting Fibonacci extensions from the 1980’s
There has been lots of data to digest this week and maybe the Fed’s, non-committal tone was enough to put the breaks on gold for now. The Federal Reserve has stated they keep the rate of QE at the current levels. There could have been a small chance that they would have committed to a more aggressive stance. Gold pushes higher whenever the Fed announce any more stimulus and the fact they didn’t could have been the reason some of the more recent moves have not been as bullish. There is also a good chance they are waiting for the White House to get their act together and announce the next round of fiscal stimulus. Last week there was talk of a deal being finalised by Monday but this never happened.
