Gold Price News and Forecast: XAU/USD bears waiting to feed on head and shoulders
|Gold Price Analysis: XAU/USD keeps mild gains above $1,900 amid stimulus hopes
Gold prices rise to $1,913, up 0.36% intraday as markets in Tokyo open for Wednesday’s trading. The yellow metal benefited from the broad US dollar weakness, amid hopes of the American COVID-19 stimulus, during the previous day. The optimism faded as Congress members failed to meet the Tuesday-end time limit to unveil the details. However, the latest comments from the diplomats suggest that hopes are favoring the much-awaited relief package’s arrival soon.
Gold Price Analysis: XAU/USD bears waiting to feed on head and shoulders
The price of gold has been sucking in the bears since the break of the 1930/20 support, only to pull in demand again at the 1850 mark. This has given rise to an uptrend to test the resistance once again, (old 1920/30 support).
However, the price is failing here and is forming a head and shoulders on the daily chart. The right-hand shoulder is, however, struggling to break the rising support on the 4-hour time frame.
A break below the support will likely fuel the bear's plight in attacking the downside towards a monthly target area as being a 38.2% Fibonacci retracement of the March 2020 rally.
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