Gold has been developing within a symmetrical triangle over the past two years as it failed to post a higher top from 1375 on June 2016. The price failed to extend its gains above the aforementioned level and has been creating a continuation pattern, indicating a breakdown as the previous tendency was a descending move. In case of a drop below the 1204 strong support obstacle, could open the way for the 1123 level.
However, if the price continues to move slightly to the upside, it could test the upper boundary of the symmetrical triangle, near 1340, which is close to the 100-month simple moving average. During the previous couple of weeks, the precious metal rebounded on the 1235 support barrier, which overlaps with the 200-week SMA as well as with the 50-month SMA and posted two consecutive bullish weekly sessions.
In the long-term timeframe (weekly chart), the metal is currently trading above the mid-level of the Bollinger band, which is acting as a short-term support obstacle. Moreover, the Relative Strength Index (RSI) is pointing up and it just climbed into the positive zone.
Having a brief look in the short to medium-term timeframe, the yellow metal touched a one-month high at 1296 and is moving towards the 1300 significant psychological level.
