Now, several independent chart studies are converging in that same spot to identify it as the next big test in the market. Short-term momentum has turned up a bit, but the price is closing in on the long-term descending resistance, which has prevented any recovery from the first quarter high since then. Whether buyers can break that down will help shape the next directional move of gold.
Gold Approaches Major Trendline Resistance
Daily price charts for gold are pointing to a move towards a descending trendline, which has been guiding it on a correction for several months, as seen by Dirk Crypto Diggy.
Gold, which dropped significantly from its all-time high earlier this year, has been able to get back on track and back to its 200-day moving average. Turning to the upper part of the chart, the price is heading towards a resistance level around the $4300-$4400 range, a level that consists of a descending trendline crossing previous breakdown levels.