Gold traded at $4,400.26 on Monday, August 17, gaining 0.54 percent by 08:40 UTC but remaining trapped below a descending trend line for the fifth straight session. The resistance line originates from January’s record peak above $5,500 and currently intersects a densely packed barrier zone that has capped the rally since last week.
Despite gold holding above both its 50-day and 200-day exponential moving averages, three technical obstacles are clustering near current levels: the falling trend line, a former support zone between $4,370 and $4,443, and stronger horizontal resistance at $4,546. While the metal reached a two-month high on August 12, it failed to achieve a confirmed daily breakout.
Traders should watch for a decisive close above $4,546, which would clear the broader resistance zone and potentially activate targets at $4,755 and $4,855. The neutralized bearish scenario that previously targeted $3,440 no longer applies after price reclaimed the $4,300-$4,400 invalidation zone.
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FXnCO Insight
** Gold remains technically neutral until a daily close above $4,546 confirms the bullish breakout and unlocks the path toward eight to ten percent upside targets.
Source: Finance Magnates