XAU/USD: Correction, Consolidation and Bearish Continuation

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Near Term Bearish Gold Fundamentals

  • Improving optimism is picking up as the U.S. and China appear to be moving closer to resolving their trade dispute.
  • Growing momentum in the U.S. dollar, and rising equity markets. Equity markets soon will be normalized. Because of the government shutdown, the U.S. economic data remains relatively light. Markets are pricing: “No News is Good News”
  • No fresh need for safe-haven assets in the near term.

Gold is doing what it’s supposed to as a hedge: it’s taking a breather as other asset classes rally.

Technically:

Gold is still in the bear market. The trend change is above $ 1.375.
Gold Prices will remain under bearish pressure below 1300. We really need to see signs of lower growth in the U.S. for gold to see a sustained push above 1300.

Markets are closed Monday in recognition of Martin Luther King Jr. Day.
We predict a minor correction somewhere 1278 – 1277 towards 1285 – A Bullish Bat Pattern.

After a consolidation XAU/USD, is likely to retest 1276.50 support. The breakout of 1276 would push the prices towards 1265-1261 zone.

The bigger fight may start at $ 1.265. If some really strong buyers do not come in, the Gold prices will meet $1.240.

XAU/USD: Correction, Consolidation and Bearish Continuation

XAU/USD Gold H4 Chart

Disclaimer: This chart has been published for educational purposes only and cannot be considered as trading advice.

This pattern/ analysis prepared by the global analysts of Chartreaderpro.com and published on Investing.com. Commercial distribution is strictly prohibited.

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