Technical Analysis: Gold buyers stay hopeful on inverse head-and-shoulders

Technical Analysis: Gold buyers stay hopeful on inverse head-and-shoulders

With the US dollar easing ahead of the Fed and bond bears are also catching a breather, gold heads to the key upside hurdle on the four-hour chart. That said, the yellow metal portrays an “inverse head-and-shoulders” bullish chart pattern that seeks confirmation from the neckline breakout, currently around $1,741. While a sustained break of $1,741 theoretically propels the quote to cross the $1,800 hurdle to the north, a downward sloping trend line from the early February and 200-SMA, respectively around $1,755 and $1,781, add to the upside filters.

Meanwhile, a pullback from the current levels, which is more likely amid the pre-Fed trading lull, will eye to revisit the $1,700 threshold. However, any further weakness may not hesitate to challenge $1,687 and the recently flashed multi-day bottom surrounding $1,677. To sum up, gold buyers are looking for a comeback after heavy losses since early 2021. Though, the US Federal Reserve meeting, up for Wednesday, holds the key to the metal’s further recovery.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.