Gold Technical Analysis: Yellow metal is charting a head-and-shoulders bullish reversal pattern

• The hourly chart shows the safe haven yellow metal is creating a right shoulder of the inverse head-and-shoulders pattern with the neckline hurdle of $1,220.
• An upside break would confirm a short-term bullish trend reversal and open the doors to $1,236 (target as per the measured height method).

Hourly chart

Spot Rate: $1,216

Daily High: $1,218

Daily Low: $1,213

Trend: Bullish above $1,220

Resistance

R1: $1,220 (inverse head-and-shoulders neckline)

R2: $1,228 (July 31 high)

$3: $1,236 (inverse head-and-shoulders breakout target)

Support

S1: $1,213 (session low)

$2: $1,204 (previous week's low)

S3: $1,200 (psychological level)