Gold Price Analysis: Head-and-shoulders breakdown on 1H

Gold's hourly chart shows a bearish reversal pattern.
Daily chart candles and indicators suggest scope for a stronger pullback.

Omkar Godbole FXStreet Contributor

Gold is trading in a sideways manner around $1,708 per ounce at press time, having hit a session low of $1,705 a few minutes ago.

The hourly chart shows a head-and-shoulders breakdown. The bearish reversal pattern has created room for a sell-off to $1,694 (target as per the measured move method).

The daily chart, too, is reporting a bearish Doji reversal pattern – the yellow metal fell nearly 1% on Monday, validating or confirming the bull fatigue signaled by Friday's Doji candle.

The stochastic indicator has turned lower from the overbought territory, indicating scope for a notable pullback.

The metal could soon find acceptance under the former hurdle-turned-support of $1,703 (Mach 9 high) and extend losses toward $1,694. Alternatively, a strong move above $1,715 would invalidate the head-and-shoulders breakdown and open the doors for a re-test of the April 23 high of $1,739.

Hourly chart

Trend: Bearish

Technical levels

XAU/USD

Overview
Today last price	1708
Today Daily Change	-7.15
Today Daily Change %	-0.42
Today daily open	1714.28

Trends
Daily SMA20	1674.35
Daily SMA50	1630.46
Daily SMA100	1583.57
Daily SMA200	1535.43

Levels
Previous Daily High	1728.71
Previous Daily Low	1706.27
Previous Weekly High	1739
Previous Weekly Low	1661.18
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1714.84
Daily Fibonacci 61.8%	1720.14
Daily Pivot Point S1	1704.13
Daily Pivot Point S2	1693.98
Daily Pivot Point S3	1681.69
Daily Pivot Point R1	1726.57
Daily Pivot Point R2	1738.86
Daily Pivot Point R3	1749.01

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.