Gold buyers appear running out of steam, despite grinding around $1,770 of late. That said, the metal portrays a one-month-old rising wedge bearish chart pattern, recently poking the support line of the formation surrounding $1,773. However, the 100-SMA acts as an extra filter towards the south near $1,763 before directing the metal bears toward the theoretical target of around $1,627. It should be noted that the 200-SMA level around $1,720 and the $1,700 round figure could act as intermediate halts during the anticipated fall.
Alternatively, the $1,800 threshold could restrict the short-term recovery of the gold price. However, an upside clearance of the $1,813 hurdle becomes necessary to defy the bearish formation. Following that, a gradual run-up towards June’s peak surrounding $1,880 can’t be ruled out. In a case where the metal buyers keep the reins past $1,880, the $1,900 round figure and May’s peak near $1,910 will be in focus.
Overall, gold awaits a fresh signal to welcome bears as it prints the rising wedge formation on the four-hour play.