On March 17, gold (XAU/USD) broke out the downtrend channel formed on 1-hour charts. After having fallen to the low of 1,895, it remains under downward pressure as it has not been able to break the 200 EMA located at 1,950.
After a recovery of more than $50 in the price of gold, it is making a technical correction. According to the Fibonacci indicator, it is expected to fall to the 61.8% zone around 1,913 as long as it trades below the 200 EMA (1,950).
Concerns about risks to global economic growth also influence the price of gold. If inflation continues to rise, gold is likely to continue its growth in the coming months.
200 EMA has become a strong top for gold. In the next few hours, there will be a pullback towards this area. If the price fails to break it, we will have an opportunity to sell gold with targets at about 1,913.
On the other hand, a technical bounce in the downtrend channel around 1,913 will be an opportunity to buy with targets at 1,950 and the psychological level of 2,000.
If the bearish pressure continues and consolidates again below the downtrend channel, gold is likely to accelerate its decline and could reach 6/8 Murray at 1,875.
The trend could change to the upside, only if gold closes and consolidates above 1,950 on the daily chart. Its next target will be 2,000 and up to 2,062.
Gold always has been the leader among the safe-haven assets. So, if the peace talks between Russia and Ukraine do not achieve their goal, the precious metal could again resume its upward trend and return to the maximum levels of March 7.
Our trading plan for the next few hours is to sell below 1,950, targeting 61.8% Fibonacci and wait for a bounce at 1,913 to buy with targets at 1,950 and 2,000. The eagle indicator is giving a positive signal.
