Gold Price News and Forecast: XAU/USD has converged into a wedge-shaped pattern as it consolidates

FXStreet Team FXStreet

Gold Price Analysis: Gold moves higher as US-China relations take a sour turn

There is quite a large consolidation pattern on the 4-hour gold chart below. The price has moved into a wedge-like formation and it will be interesting to see if the bulls can take out the pattern to the upside. The price waves are making lower highs and higher lows which shows a lack of commitment in either direction in the short term.

The magnetic level seems to the USD 1700 level at the moment. The price keeps bouncing off the psychological zone which is also very close to the 55 exponential moving average. There does not to be too much upside conviction but It seems that this could be a pause for another move later down the line.

Gold: Consolidation within a medium-term uptrend?

The gold futures contract gained 0.4% on Friday, as it retraced some of the recent declines. The price bounced off $1,675 level (the daily low at $1,676). Gold continues to trade within a downward correction following its April’s advance. On April 14 it was the highest since November of 2012 and the daily high was at $1,788.80. Since then we’ve seen some profit-taking action and a potential downward reversal.

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.