FX.co ★ Gold: bearish pattern needs confirmation

The price of gold continues to stay higher even if the price action signaled exhausted buyers. It's located at 1,983 at the time of writing, below today's high of 1,993. The bias remains bullish, but an upside continuation needs confirmation. Also, despite exhaustion signs, a correction is far from being confirmed.

Fundamentally, the ECB maintained the monetary policy unchanged as expected, while the US Advance GDP, Advance GDP Price Index, Pending Home Sales, Durable Goods Orders, and Core Durable Goods Orders reported positive data.

Tomorrow, the US Core PCE Price Index and Revised UoM Consumer Sentiment represent high-impact events.

XAU/USD Sell-Off Still Possible!

Technically, XAU/USD was rejected by the uptrend line again, but the bias remains bullish as long as it stays above the minor uptrend line.

The price is trapped within a minor flag pattern and it has signaled a potential Double Top pattern.

XAU/USD Outlook!

Staying below 1,997 higher high and taking out the minor uptrend line activates this bearish formation. Still, only a valid breakdown below the pivot point of 1,962 activates the Double Top pattern and brings new selling opportunities.

On the contrary, making a new higher high, closing above 1,997 indicates further growth and invalidates the downside scenario.