Gold: the rising wedge pattern indicates further decline

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Gold: the rising wedge pattern indicates further declineGold is down today and is trading at 1777 at the time of writing above the weekly low at 1772. The price is back to testing and retesting the near term resistance levels before selling resumes.

Gold is dominated by sellers

There was a possibility of additional growth after the failure to break below the rising trend line of the wedge pattern. However, the price could not stabilize above the psychological level of 1800, which indicates that buyers have capitulated once again. Gold recorded a violent collapse across the rising trend line of the wedge and broke the 1783 support level.

The yellow metal collapsed as the US dollar index rose, forcing the US dollar to rise against most of its rivals. Basically, US UoM Consumer Confidence came in better than expected at 55.1 vs. 52.5 expected. This may be the reason for the rise of the dollar and the decline of gold.

gold forecast

A break below 1,783 and a retest of it suggests further declines to come. Gold tried to breach the level to the upside, but it turned into a false breakout, which added to the bearish bias for the yellow metal. Now, it has retested S1 (1,779), a new lower low, and awaits a lower and close below 1773 which could bring new short opportunities with a possible downside target at 1.765:1750.

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