Gold breaks symmetrical triangle pattern, jump till $1800 likely

Chart pattern- symmetrical triangle break out

Gold continues to trade higher for 2nd consecutive week, jumped more than $80 from low made on $1682. The weak U.S economic data released this month has increased hopes of more stimulus from the Fed. It hits a high of $1764.06 at the time of writing and is currently trading around $1761.53.

US economic data:

US economy lost nearly 20 .5 million jobs in Apr vs forecast of -22 million and the unemployment rate at 14.7%, the highest level since the 1930s. The Broader U6 unemployment rate surged to record 22.8% from 8.7%.

The total number of filing for unemployment benefits totaled 2.981 million last week, jobless claims during coronavirus crisis rose to 36.5 million.

Technicals:

The yellow metal is holding well above the symmetrical triangle and this confirms the primary trend continuation. From here, it is expected to reach $1800 (161.8% fib)/1825 in the near term.

On the flipside, near term support stands at $1708 (21-day MA) and daily close below will drag down gold till $1690/$1660. The bearish continuation can happen only if it breaks $1660.

It is good to buy on dips around $1741-42 with SL around $1728 for the TP of $1800.