Gold Price Analysis: XAU/USD inverted H&S pattern targets 1,700

Gold is looking towards a week of volatility, especially if the H&S pattern is left to play its role.
If resistance at 1,740 remains in place, XAU/USD could fall back into the hands of the sellers.

John Isige FXStreet

The world’s most pressures metal is dealing with the formation of an inverted head-and-shoulders pattern. Looking back, a recovery towards the end of May from levels at 1,700 lost steam at 1,740 in the first week of June. Sellers griped the market more, forcing gold under 1,700. The monthly low at 1,670 marked the end of the lower leg, giving way for recovery.

XAU/USD recovery in the last seven days remained steady but stalled once again at 1,740 which formed the inverted H&S pattern. The precious metal closed the trading on Friday 1,730 amid consolidation. If the selling pressure toward 1,740 continues to prevail in the coming weeks, we can expect sellers to dominate the market, pulling gold back to 1,700.

The technical picture at the moment supports consolidation. However, the price is inclined towards making minor declines while narrowing towards the short term support areas at the 100 SMA, currently at 1,718.25 and the 50 SMA at 1,713.02. It is likely that consolidation could last longer, especially when the sidelong moving MACD is taken into account. All in all the impact of the H&S pattern cannot be ignored especially with the dollar gaining strength.

XAU/USD 4-hour chart

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

GBP/USD eases from tops, retests 1.3630

GBP/USD clings to its daily gains, although it gives away some gains and recedes toward the 1.3630 region on Thursday. Cable’s uptick comes despite the bounce in the Greenback, which manages to regain some balance in the wake of Wednesday’s deep pullback.

EUR/USD turns negative near 1.1670

EUR/USD now trades with modest losses around 1.1670, coming all the way down from earlier tops beyond 1.1700 the figure. The pair’s decline follows the acceptable rebound in the US Dollar as market participants continue to closely follow developments from the US money market.

Gold comes under pressure below $4,500

Gold faces some correction and slips back below the key $4,500 mark per troy ounce on Thursday. The precious metal’s daily decline comes amid the slightly improvement in the US Dollar and rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP extend gains as ETFs inflows and improved sentiment boost outlook

Cryptocurrency prices are extending gains on Thursday, led by Bitcoin’s (BTC) climb above $70,000. Ethereum (ETH) remains bullish, trading above $2,200, while Ripple (XRP) has recovered above $1.15 as bulls tighten their grip.

US Treasury doubles long-dated bond buybacks: Why are yields rising again?

US Treasury yields stabilize on Thursday after Wednesday’s sharp decline, with the 10-year yield edging back up to 4.672%. The US Treasury doubled the size of some long-dated debt buybacks, a surprise decision that helped ease the recent surge in yields.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.