In the heels of Wednesday’s increase, gold prices are increasing this Thursday. Dhwani Mehta of FXStreet says that XAU/USD is poised to regain $2,000 soon.
In the daily chart, the price of gold is developing a bull pennant.
“In the daily chart for gold, a prospective bull pennant is seen. For the bullish continuation pattern to be genuine, gold buyers must achieve a daily candle stick close above the $1,975 falling trendline resistance. The $2,000 round figure will be contested if there is an upside break, which will necessitate testing the high from Tuesday at $1,985.
“On the other hand, if Gold bulls are unable to maintain higher levels, any retracements may push the intraday low at $1,965, beyond which the static support at $1,960 would be in danger. A challenge of the falling trendline support at $1,926 will be possible with deeper drops that expose the $1,950 demand region.