Analysis

Gold price outlook: Potential target on uptrend line amidst bearish sentiment

Dollar and stock bulls are celebrating this week but Gold buyers probably are not so happy with the past few days of trading. Tuesday and Thursdays were especially bad here with the Tuesday bringing us a proper, technical signal to sell.

Gold had an amazing first half of the year really and the bearish sentiment is still fresh. Since the middle of March, the price was creating the triple top formation (yellow), which on Tuesday ended with a decisive slide and a breakout of the neckline of this pattern (green). The triple top formation is activated and so it the signal to sell.

Where is the potential target? Well naturally it is on the long-term up trendline (blue), which connects lows from November 2022 and March 2023. Chances that we will get there are quite high as first of all it is very close and second, the sell signal seems rock solid. What will happen next depends from the price action on this area but further strength of the USD can jeopardize any plans for another upswing.

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