Gold is trapped within a Falling Wedge pattern which signals a potential upside reversal if the price jumps and stabilizes above the downtrend line. Still, the selling pressure remains high as long as the price stays under the downtrend line.
We'll talk about two scenarios in this analysis. One for those who want to buy gold and another one for sellers. Staying within this chart pattern under the downtrend line could lead to a deeper drop.
Gold Trading Tips
Dropping below 1,763 level after retesting 1,800 and the downtrend line could offer us a good selling opportunity. So, you can sell from below 1,763 level using 1,700 as a downside target.
Escaping from this pattern, breaking above the downtrend line, and reaching 1,820 represents a buying signal. Such a breakout signals that the gold price could come back higher towards the 1,900 psychological level.