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.
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