If I had shown you this chart unlabelled, one would be forgiven for thinking this was the five-minute chart, especially considering the past eight candles or so.
While sustained upside, as shown above, is rare on the weekly chart, gold bulls will undoubtedly be pleased with recent performance, with price action virtually parabolic.
Having broken out of an upwards channel, with the upper boundary held around $3,602, what followed was an explosive move to the upside, marking fresh all-time highs.
While no candlestick structure to the upside could otherwise offer resistance, traders should be aware that a short-term correction remains possible, with the RSI reporting gold pricing as ‘overbought’ for the fourth time this year.
Otherwise, should price stage a move higher, we can expect some profit-taking at the key level of $4,000.
