The range has been defined by two trendlines of a triangle, which will be confirmed as a bullish pattern, should gold climb above $1,315, or a bearish pattern, when the metal falls below $1,305.
A bullish target at $1,330 or a bearish target at $1,296 will be established accordingly once gold leaves the range. These two levels are respectively the 61.8 percent and the 23.6 percent Fibonacci retracements on the fall from the July 10 high of $1,345 to Aug. 1 low of $1,280.40.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.