Gold is forming a symmetrical triangle on the 4-hourly timeframe. The overnight rise in oil may impact its price in the short-mid term. The current outlook is neutral.

From a technical outlook, gold is currently trading at around $1,963 an ounce. We can see that on the 4-hourly timeframe, the commodity is creating a symmetrical triangle, and the outlook is strengthened by lower highs and higher lows. At present, resistance sits at $1,969-$1,971, which is approximately where both the 20-day and 50-day moving averages meet. A break and close above these averages may see the price of gold edge higher towards $1,987, which is the next barrier of resistance (this price level sits along the upper trendline of the triangle). On the other hand, towards the downside, support sits at $1,949 followed by $1,944 and finally at $1,934. A break below $1,934 could see the price slide further towards the range of $1,885-$1,900 an ounce. Looking at the technical indicators, MACD is negative but RSI is neutral as it reads 46. Investors should be aware that the recent jump in oil prices could play a role in the direction of gold. Crude prices are used as a measurable indicator of the status of the global economy, hence, higher crude prices could mean inflation will remain high. In turn, high inflation would result in interest rates remaining at their current level or potentially even further smaller increases. This would not only have an impact on equities but also on gold.