Bargain hunters helped drive April gold prices higher on Tuesday. The weaker U.S. Dollar also helped underpin the market. Technically, several days of narrow trading and consolidation gave one the feeling that something was up, but the direction wasn’t clear. On one hand we had the downtrend on the daily chart, but we also had a new higher bottom at $1560.40 from March 8 which was indicative of new buying.
Technically, April gold is trading on the bullish side of a retracement zone at $1587.00 to $1579.28. Uptrending support is at $1580.30. Downtrending resistance is at $1599.70. This has created a triangle chart pattern on the daily chart which is indicative of more short-term volatility.
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