Gold trading at $1674.71

The price of gold approached the upside boundary of its near-term range at 1682, following yesterday’s rally from the levels close to the range floor that cracked the triangle resistance at 1686. However, according to Slobodan Drvenica an analyst at Windsor Brokers Ltd., “Sideways movements within 1657 and 1682 illustrate a neutral near-term tone, with break of either side required to establish fresh direction.”

“Improved hourly conditions ultimately see the upside favored at this point, however a lack of bullish momentum on 4h chart warns of a possible stall at range top and daily Ichimoku cloud base at 1682.” Drvenica adds.

The upside scenario on a break higher sees the next targets at 1685 and more significant 1695 (previous peaks and daily Ichimoku cloud top), while supports lie at 1670 (session low / 55-day EMA), ahead of 1661, yesterday’s low and 1657 (31 January low / range floor). At the time of writing the price of gold has settled at USD $1674.71 Tuesday,