Spot gold technical analysis: Pay attention to the resistance range between $4198 and $4218

1. Technical analysis shows that spot gold may break through the $4,183 per ounce resistance level and rise to the $4,198–$4,218 range. 2. The gold price has already broken the $4,162 resistance, which is the 61.8% Fibonacci retracement of the $4,218 to $4,073 decline. This breakout increases the likelihood of gold retesting the $4,218 high. 3. The price movement from October 7 to 14 appears to form either a flat pattern or a double bottom, both of which suggest that gold is likely to further rise toward $4,218. The rally since $4,073 seems to be forming a flag pattern, as the consolidation since the previous session is trending upward. 4. If the newly established support at $4,162 is broken, it may trigger a decline toward the $4,128–$4,145 range. On the daily chart, a bullish engulfing pattern formed from October 14 to 15, combined with bullish RSI divergence, strongly suggests a reversal of the downtrend that started from $4,696.