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MTrading Team • 2023-05-12

Gold fades upside momentum within rising wedge

Gold fades upside momentum within rising wedge

Gold price eyes the first weekly loss in three as it retreats inside a 15-week-old rising wedge. However, the 21-day EMA adds strength to the $2,008 support, a break of which will confirm the bearish chart pattern suggesting a theoretical fall toward $1,750. That said, the $2,000 psychological magnet will precede the multiple lows marked near $1,970 and February’s peak of around $1,960 to act as an intermediate halt ahead of the aforementioned theoretical target of the wedge. It should be noted that the year-to-date bottom of around $1,810 may offer an extra filter towards the south.

On the contrary, Gold price recovery may initially aim for $2,050 ahead of challenging the stated wedge’s top line surrounding $2,075. In a case where the XAUUSD bulls defy the bearish chart formation by crossing the $2,075 hurdle, the recently flashed all-time high of around $2,080 and the $2,100 will be in the spotlight.

Overall, the Gold buyers appear to run out of steam and the rising wedge teases the bears. However, the downside appears challenging and has multiple speed-breakers, including the mixed signals flashed by the RSI (14) line and MACD signals.

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