So far this Thursday, gold price is staging a minor comeback around $1820 region as the dollar and yields consolidate the solid gains. ‘Buy the dips’ rescues XAU/USD after the Fed-blow, but for how long? The technical picture has taken the shape of a bear flag, which is a bearish continuation pattern, FXStreet’s Dhwani Mehta briefs.
There is scope for additional XAU/USD declines
“Bargain hunting, in light of the recent crash, could be associated with the rebound in gold price. The Fed’s hawkish signal is likely to keep the US currency afloat ahead of the weekly Jobless Claims data and other minority reports, which will maintain the downside pressure on gold. Therefore, gold price could resume the downtrend in the sessions ahead.”
“A fresh downswing, with a test of Wednesday low of $1803 looks inevitable. If the selling pressure accelerates below $1800, the bears will aim for the pattern target measured at $1769.”
“A sustained break above the rising trendline resistance at $1829 could add extra legs to the rebound, driving the gold price towards a downward-pointing 21-Hourly Moving Average (HMA) at $1838.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.