Gold is breaking higher. In the view of FXStreet’s Dhwani Mehta, XAU/USD could recapture the $1,800 level amid a symmetrical triangle breakout.

Gold confirms a symmetrical triangle breakout

“The Fed is likely to announce faster tapering from January 2022 while the Dot plot graph could hint at a mid-2022 rate lift-off. Although amid looming uncertainty over the new variant, investors could see a dovish tapering announcement, calling for an extension of the recent recovery in XAU/USD.”  

“Gold has confirmed a two-week-long symmetrical triangle breakout on the four-hour chart. The upside breakout clears the path for a test of the downward-sloping 100-Simple Moving Average (SMA) at $1,792. Acceptance above here will bring the $1,800 threshold back into the picture, above which a fresh upswing towards the horizontal 200-SMA at $1,808 is envisioned.”

“Any reversal from higher levels will challenge the $1,782 support area, which is where the 21 and 50-SMAs close in. A decisive break below here could trigger a steep drop towards the triangle support at $1,771. The next relevant support is seen at the fierce cap of around $1,761.”