Gold price reversed from a triangular pattern and now is back below the main bearish trendline. Put it simply, the price action is back into bearish territory, especially considering the fact that the series of lower highs that started with the double top pattern remains in place.
For the price of gold, the next few days are very important. On the one hand, the market reflects the rise in the long-term yields in the United States. As traders are well aware, the price of gold and the long-term yields have an inverse correlation – when yields rise, gold declines. Therefore, if the yields continue to rise, the price of gold looks poised to break to a new low.
On the other hand, the dollar looks bid across the FX dashboard. It keeps gaining against the euro and other G10 currencies, boding well for a bearish price action on the gold market too.
Gold Technical Analysis
From a technical analysis perspective, the price of gold looks weak. While the market did broke above the falling trendline, it fell back below after a triangle as a reversal pattern ended the bullish price action.
Bears may want to stay on the short side targeting new lows, while having a stop-loss order at the previous lower high seen in the triangular pattern.
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Gold Price Forecast
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