Gold buyers appear to run out of steam as traders await the key advance US GDP for Q4 2022, following the five-week uptrend. A one-month-old rising wedge formation joins recently sluggish oscillators to tease the metal sellers. However, a clear downside break of the $1,917 support appears necessary to confirm the bearish chart pattern, which signals a theoretical south-run towards the previous monthly low surrounding $1,767. It’s worth noting that a convergence of the 200-SMA and upward-sloping trend line from late November, close to $1,846, appears an important stop during the anticipated slump between $1,917 and $1,767.
Meanwhile, the stated wedge’s upper line near $1,948 appears immediate hurdle for the Gold buyers to cross to retake control. Following that, a run-up toward the June 2022 peak of around $1,966 becomes imminent while the $2,000 psychological magnet could lure the bulls afterward. In a case where the precious metal remains firmer past $2,000, the year 2022 high of $2,070 will be in focus.
Overall, gold is likely slipping off the bull’s radar but the bears have a tough task to take entry.
