Gold bears are taking a breather on Wednesday, contemplating the next move ahead of a bunch of critical US data and Fed minutes. As FXStreet’s Dhwani Mehta notes, XAU/USD is charting a bear cross on the four-hour chart, therefore, the downside appears more compelling for gold price.
“The FOMC minutes could shed fresh insights on the central bank’s rate hike outlook, in the wake of the rising inflationary pressures and robust economic recovery.
“Ahead of the FOMC minutes, the US PCE Inflation, GDP and Durable Good data will influence the dollar and gold valuations as well.”
“Gold is carving out a bear flag formation on the four-hour chart. Therefore, a four-hourly candlestick closing below the rising trendline support at $1,790 is needed to confirm a downside breakout from the bearish continuation pattern. Bears will then keep their eyes on the pattern target measured at $1,707. However, the November 4 lows of $1,769 could challenge the bullish commitments before. The $1,750 psychological level could be next on their radars.”
“The rising trendline resistance at $1,798 will cap the recovery attempts. Acceptance above the latter will invalidate the bearish formation, opening doors for a retest of the horizontal 200-Simple Moving Average (SMA) at $1,806.”
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