According to the chart pattern of the gold price on a four-hour chart, it is forming an Inverted Flag, which indicates a complete consolidation followed by a breakdown. In most cases, the consolidation phase of the chart pattern is used as a way of adjusting inventory, where those participants who wish to enter an auction after establishing a bearish bias will initiate shorts.
There are also issues with Gold's price holding above the 23.6% Fibonacci retracement at $1,878.00 in relation to its high of $1,959.20 on February 2 and its low of $1,617.32 on November 11 of last year.
There is a significant barricade acting as a significant barricade for the Gold price, which is the 20-period Exponential Moving Average (EMA) at $1,882.20.
In the meantime, the Relative Strength Index (RSI) (14) is struggling to cross the 40.00 threshold, which indicates that the gold bulls lack the strength to move higher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell these assets. You should do your own thorough research before making any investment decisions. EnclaveFX Ltd does not in any way guarantee that this information is free of mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in the Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including the total loss of principal, are your responsibility.
EnclaveFX Ltd and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. EnclaveFX Ltd and the author will not be liable for any errors, omissions, or any losses, injuries, or damages arising from this information and its display or use. The company is not responsible for errors or omissions.
