Gold is trading around $4,057. After a prolonged period of consolidation, Gold is continuing to trade within a symmetrical triangle with long-term ascending trendline support and resistance that is forming with a down-sloping trendline. The price is currently caught between the 50-EMA at $4,059 and the 100-EMA at $4,067. This indicates that the price is highly likely to breakout in one direction or another.
Should the price break to the upside, the first resistance level is expected at $4,067, while the trendline resistance is found at $4,115. A break above this area would be an official breakout of the consolidation and target $4,148. Should the price break to the downside, bullish trendline support and demand zone convergence (the area where price has been bought the most) is located at $3,999. A break of this price would invalidate the bullish structure and target $3,969.
The RSI is currently at the 50 level indicating indecision is present in the market. With Gold being in a consolidation phase, the breakout from the current triangle is expected to have a strong influence on the overall market direction for the mid-term.