Gold consolidating recent gains near highs

Gold has been consolidating in up and down trading this week. The high price was reached on Tuesday at $2673.14. That was just above the all-time high close was reached last Thursday at $2672.03. The low price this week was reached on Monday at $2624.82. The current prices trading at $2657.96.

Looking at the hourly chart, the pair is consolidating between trendlines. The downward sloping trendline from recent highs cuts across at $2663.19. The lower upward sloping trendline cuts across at $2638.47.

In between the two trendlines are the 100 and 200-hour moving averages which come in at $2650.69 and $2652.00.

Traders are waiting for the next shove.

The price is still near all-time highs. Looking at the daily chart, the price last week moved above a topside channel trendline, increasing the bullish bias on the break. However, momentum cannot be sustained, and the price has traded below that moving average every day this week. That trendline currently cuts across near the all-time high near $2686 (and moving higher each day).

A break above that moving average opens the door for “open-road” ahead. It would take a move back below the trendline to hurt the bullish bias should the upside trendline be broken

This article was written by Greg Michalowski at www.forexlive.com.