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.