Gold price looks bearish as bearish can be as it keeps forming lower lows without able to bounce significantly. Investors keep exiting the precious metal as the bullish dollar narrative gains traction on the back of higher long-term yields in the United States.
What is curious here is that the weakness in the price of gold comes in the context of still stronger Bitcoin and higher inflation. Therefore, gold as safety against inflation failed so far, with the yellow metal dropping double-digits after the highs in 2020.
The move lower triggered weakness in silver too. On that market, a possible head and shoulders points to more downside – just like the technical picture on the price of gold does.
Gold Price Technical Analysis
Below is the price of gold since the 2020 all-time highs. The market formed a triangle as a reversal pattern, and its apex (i.e., the intersection point of its trendlines) acted as a tough resistance for the market. At that level, the price of gold formed a double top pattern and recently broke below the so-called neckline. From this moment on, bears will focus on the measured move, which points to a trip all the way to $1,560. A bounce back to $1,780 would invalidate the pattern, while gold remains bearish while below $1,760.
Gold Price Forecast