• Gold Price turns south again after a mixed trading action on Wednesday.
  • Treasury yields rebound as sentiment improves while the USD eases.
  • A symmetrical triangle breakdown looks likely on XAUUSD’s 4H chart.

Gold Price witnessed good two-way businesses on Wednesday, ending the day modestly flat near the $1,816 region. The bright metal lacked a clear directional bias and wavered within a familiar trading range almost throughout the day.

Global growth fears resurfaced and triggered a flight to safety theme across the board, reviving the safe-haven bids for the US dollar. The market turned risk-averse after hot inflation in the UK, Europe and Canada re-ignited growth fears, especially at a time when major global central banks are looking to tighten aggressively to curb raging inflation. The USD-priced gold, therefore, failed to sustain its rebound near $1,825. The downside in XAUUSD, however, remained capped by the retreat in the US Treasury yields, as risk-off flows bumped up the demand for the government bonds. Further, looming growth and inflation risks also helped put a floor under the so-called inflation hedge, gold.

Gold Price is feeling the pull of gravity this Thursday, as an improvement in the broader market sentiment has revived the demand for riskier assets at the expense of the safe-havens such as the US Treasuries. The resultant rebound in the US rates is dragging the non-yielding gold lower. Although the losses remain in check, as the dollar loses ground amid risk-recovery. Looking ahead, the dynamics of the dollar and the yields will remain the key catalyst behind gold’s valuations, as the US docket has no top-tier data to offer. The sentiment on global stocks will be also closely eyed for fresh trading opportunities in the precious metal.

Gold Price Chart: Four-hour chart

Gold Price is on the verge of confirming a downside break from a symmetrical triangle formation.

At the time of writing, XAUUSD is testing the rising trendline support at $1,813, having failed to defend the horizontal 21-Simple Moving Average (SMA) at $1,816.

A four-hourly candlestick closing below the abovementioned trendline support is needed to validate a breakdown, opening floors for a retest of the $1,800 mark.

The next critical support awaits at the multi-month lows of $1,787. The bearish Relative Strength Index (RSI) points south, backing the case for a potential downside.

On the flip side, recapturing the 21-SMA is critical to alleviating the bearish pressure, which could see gold bulls re-attempting the falling trendline resistance at $1,819.

Acceptance above the latter will kickstart a fresh upswing towards the descending 50-SMA at $1,831.

Ahead of that, Wednesday’s high of $1,825 will challenge the bearish commitments.

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