Gold Chart – Ascending Triangle and Technical Targets

The price of gold has squeezed into a tighter trading range over the past few months. The chart now shows a textbook ascending triangle – typically a bullish pattern in technical analysis. It’s a sign of buyers getting more aggressive, as the price keeps bouncing off higher support. But they’ll need to break that wall of sellers (near $3,500) to put the gold rally back on track.

What is an ascending triangle pattern?

An ascending triangle forms when the price keeps hitting the same ceiling, but makes rising lows underneath. Think of it like steam building up inside a pressure cooker. Each time the lid rattles, pressure increases – until eventually, it blows. 

That’s what traders are looking for with gold. The flat top near $3,500 shows sellers defending the same level. But the rising support line shows buyers stepping in sooner each time – a sign of building buy pressure.

You can measure the potential “price target” by taking the height of the triangle and adding it to the breakout point. That’s called a “measured move” – it’s a common way traders set technical targets. 

Here, that gives an upside target of around $3,750 for gold (green). And if it breaks lower instead, we could be looking toward $3,000 even (red). 

What’s the trade for gold here?

The gold price is now sitting near the bottom line (the upward sloping support). If it breaks below that line, the risk of tagging $3,000 goes up. 

In my books, buying close to a pattern’s “failure point” tends to be better than buying the breakout. If the ascending triangle breaks higher, you get a lower entry price for the ride. And if the pattern breaks down, you can get out without losing your shirt.