FX.co ★ HiDe_N_SeEk | XAU/USD, GOLD

For the second day in a row, gold remained uncertain as it held within Friday's range and below important moving averages. However, the rising bearish wedge formation that started last Tuesday continued to have bearish implications. The pattern breakdown is still legitimate, even though negative follow-through has paused. Lower prices are indicated on additional weakness. This puts gold in a precarious technical position where confirmation in either direction is still needed. The lower daily highs of $4,772 and $4,833 are important gold resistance points. The 10-day, 20-day, and 100-day moving averages are among the important moving averages that the lower level is currently above. This indicates that it is close to the peak of a possible short-term resistance range. Consequently, a recovery at that level might be more important. Additionally, since it represents significant potential resistance, this shows that negative pressure will continue unless there is a sustained move back above that lower daily high. The next level of interest is $4,833, with the 50-day moving average close to $4,556 following a strong recovery of $4,772. It would probably be tested again if strength persisted because that average served as resistance for the most recent lower swing high of $4,890. The prospect of an upswing is maintained by the absence of bearish momentum following the wedge trigger. They can fail, just like any other pattern. The gold rising wedge may fail or change into a different pattern until there is further bearish confirmation. Instead of complete confirmation, this maintains the larger structure in a state of transition. A decline below the higher swing low at $4,640, which would provide another bearish reversal signal, should settle recent hesitation. An initial objective based on the wedge formation begins at the February spike low of $4,402 and moves to the 200-day moving average at about $4,259. Since October, the region close to the top of that range has been identified as important support and resistance. The rising 200-day moving average at $4,259 is represented by the lower level. Support was observed close to the 200-day moving average during the most recent steep drop in March to $4,099. That was the first time that average had been touched since February 2024. The rising wedge pattern was the result of the bounce off that zone, and it started with a bullish hammer candlestick pattern, which was a strong indication of strength. Gold is currently at a critical technical juncture, having moved from the first reaction off long-term support to the current halted consolidation below resistance. While a recovery of $4,772 might lead to another upward breakout of the channel, a decrease will retain it inside a rising channel formation.