Gold Price Analysis: XAU/USD drops in Asia, confirming rising wedge breakdown
- Gold's hourly chart shows a bearish reversal pattern.
- The breakdown has exposed the recent low of $1,948.
Gold is currently trading at $1,893 per ounce, representing a 0.65% drop on the day.
The decline has confirmed a rising wedge breakdown on the hourly chart. The bearish reversal pattern indicates that the recovery rally from the Sept. 28 low of $1,948 has ended, and the sell-off from the Sept. 16 high of $1,973 has resumed.
As such, the yellow metal could re-test $1,948. On the way lower, the higher low of $1,880 created on the hourly chart on Sept. 30 could offer support.
The bearish bias would be invalidated if prices find acceptance above Thursday's high of $1,912.
Hourly chart
Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
