Gold fluctuates in a relatively tight range below $1,950. XAU/USD bulls are set to face an uphill battle, with a break above the $1,938 mark needed to see further gains.

Gold is teasing a symmetrical triangle breakout

“The metal remains exposed to upside risks, as it teases a symmetrical triangle breakout on the four-hour chart.”

“If gold bulls manage to settle above the falling trendline resistance at $1,938, then it would validate an upside breakout from the triangle. The further advance will be initiated, opening doors towards the mildly bearish 50-Simple Moving Average (SMA) at $1,945. Up next, gold buyers will target $1,950, the March 17 highs en-route the ascending 100-SMA at $1,954. The previous year’s high of $1,960 will be next in sight.”

“If bulls failed to yield a triangle breakout, then the price of gold could pull back towards the 21-SMA at $1,933. Deeper declines will then call for a test of the rising trendline (triangle) support at $1,923. A sustained break below the latter will confirm a triangle breakdown, exposing the upward-sloping 200-SMA support at $1,910.”